Real, or inflation-adjusted, yields moved aggressively higher on Thursday, a day after the Federal Reserve delivered its biggest rate hike in more than two decades, according to Tradeweb data. The 30-year yield on Treasury inflation-protected securities went up to 0.6% from 0.46% at Wednesday’s close. The 10-year TIPS yield went to 0.2% from 0.07% on Wednesday, and the 5-year TIPS yield went to minus 0.16% versus minus 0.33%. Higher real yields are bad news for riskier assets like stocks because they reflect the true cost of capital for corporations.
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