By One Measure, U.S. Rates Are Already Negative
Yield on 10-year Treasurys, adjusted for inflation, falls below zero for first time since 2012
The 2016 rally in government bond prices has taken U.S. real yields, which subtract inflation from the 10-year Treasury yield, below zero for the first time since 2012.
The 10-year U.S. Treasury yield was recently 1.72%, which is below the latest reading on the core consumer-price index of 2.3%. By this metric, the real U.S. 10-year yield is -0.58%.