The AI trade has spent the year arguing about demand. This week the argument is about the discount rate, and the cleanest way to see it is not in the Fed funds futures but in TIPS — Treasury Inflation-Protected Securities, the bonds whose yield is the real rate the market charges after inflation. On Friday the 10-year real yield closed at 2.60%, accordi…
Real Rates — What TIPS and the Credit Tape Say About the AI Build-Out Before the Fed
The AI trade has spent the year arguing about demand. This week the argument is about the discount rate,
