Two Charts

First we have a chart of the yield on the 10 year T-note and the Fed's favorite inflation measure, the PCE deflator-released quarterly with the GDP report. You can see that directionally they track one another very closely-



The next chart is yet another attempt to get a handle on where "real rates" are versus where they have been in the not too distant past- the yield on the 10 year note minus the yoy change in the PCE deflator. Once again the take-away is that real rates are still very low-