TradingView Setup Tutorial: How To View Nominal Yields, Real Yields & Inflation Expectations
This video shows you how to set up and view nominal yields, real yields & inflation expectations in TradingView.
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We just have a question from Leeway asking about a US 10-year bond yield, saying that the US 10 year bond yields we're looking at in TradingView, does that refer to your nominal or the real yield?
And the second question, is there a way to view nominal yield, real yield and inflation expectations in TradingView?
Let's start with the US ten-year first. So whenever you're looking at any type of bond yield, whether your looking at your US ten-year, your US five-year, whether you're looking at your German ten-year or five-year or two-year, doesn't matter. It's always gonna refer to your nominal bond yield.
So remember that your real yield is basically your nominal yield minus inflation expectations. Whenever you see something like US ten-year or US five-year or German ten-year or five-year, two years always gonna refer to your nominal yield, not your real.
Now the great thing is, as you already know, you can view quite a couple of country's various bond yields on TradingView so very handy tool to have.
Now when it comes to inflation expectations and real yields, you can view them inside TradingView but there is a little bit of a trade-off that you'll need to be aware of.
So let's start with inflation expectations. Unfortunately, you don't have inflation expectations as an instrument on TradingView, but you can import data from Quandl, Quandl is a data website and you can use some of the codes within TradingView. So the great thing is that you can have five-year forward-looking inflation expectations and ten-year forward inflation expectations within TradingView.
The challenge is you can only view it on the daily because it's only updated once a day. So you can see here for your five- and your ten-year, you can only have data from the close yesterday to the ninth. So, you don't have any real time information, which is of course a trade off, but at least you can view it. You're just not, you can't see it real time. Similar story there for your real yields.
The code that you use for your real yields for Quandl, let me just quickly see if I can remember that- we have it somewhere here, there we go, there we go. So if I just pop that on the chart, you can see that this is on the one hour timeframe and I've added that real yield from Quandl now but it's not showing, it's showing a study error because we need to go once again to the daily. And let me just quickly pop that code in on the screen for you as well if you want to just copy that. So you can just take that exact code, pop it into your search bar, press enter, don't wait for it to show you Quandl treasury yield. It's probably not gonna show up because it's not one of the built-in tickers. But if you just press enter, it should load it up and then you can choose whether you can add it as a, onto which scale you want to add it basically.
Now, again, the challenge of this one, the reason why I like to use the iShares TPS bond ETF inverted is because that's slightly more real time compared to the Quandl version. You can see that the two, your TPS bond ETF, closely, closely approximates the moves in the treasury, or in the Quandl real yield. But you can see the difference here is that obviously we've got data for the 10th for the TPS spot and we only have data up until yesterday for real yields.
Now what was nice about the ETF is that it trades during the US market hours. So from US cash open to US cash close you can view it. Obviously you won't have data for the European trading station, which is a bummer, but at least you can view it slightly more real time compared to the Quandl version. So that is for real yields as well as for inflation expectations. Now, if you want to see it slightly more real time compared to what you have for TradingView, you can opt for something like Eikon. We of course use the Eikon platform. And let me show you what that looks like. So on this chart, you can see the purple one is your US five-year break even inflation rate, and below that you have the 10-year break even inflation rate. Lots of similarities between your forward inflation and your break even so you can use either or really. So this gives you a little bit more real time.