The Real Interest Rate

Loading Data

Please wait, we are loading chart data

Interpretation

The real interest rate is calculated as the difference between the nominal interest rate and the inflation rate. The chart above displays the nominal interest rate of a 1-year US Treasury bond, the US inflation rate, and the resulting one-year real interest rate. Inflation is defined as the yearly percentage change of the Consumer Price Index (CPI). When inflation is high, prices for goods and services rise and thus the purchasing power per unit of currency decreases. The chart shows that, adjusted for inflation, the yields on US Treasuries (blue line) have often been negative.
Interestingly, Real Yields are negatively correlated with Gold Prices.

Data Sources

Further Information


View More Charts


Error

An error appeared while loading the data. Maybe there is a technical problem with the data source. Please let me know if this happens regularly @silvan_frank.