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John Authers

Sub-Zero Landmark Spells Summer Heatwave for Gold

Negative and falling real bond yields can only burnish the appeal of an asset that pays no income.

Negative real yields give gold more of a glow.

Negative real yields give gold more of a glow.

Photographer: Lisi Niesner/Bloomberg

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Ending a sleepy summer week, traders managed to reach a major landmark. The 10-year real yield (as shown by Treasury Inflation Protected Securities, or TIPS, and which can also be expressed as the nominal yield with the breakeven rate of inflation subtracted) dropped to a new low for the year. At below -0.6%, it was also a fresh nadir since the so-called taper tantrum of 2013: