The real yield is the interest rate after inflation — what your money actually earns in purchasing power. The 10-year real yield (TIPS) is one of the most important prices in global markets.
When real yields rise, cash and bonds become more attractive versus risky, long-duration assets like tech stocks and crypto. Capital rotates out. When real yields fall, the opposite happens — risk assets get a tailwind.
This is why a macro read that ignores real yields is incomplete. A market can look calm on the surface while real yields quietly grind higher, draining liquidity underneath.
Watch the level and the trend: a real yield that's both high and rising is a genuine headwind, even if headlines look fine.