CycleWatch

Signals › Monetary Policy, Rates & Liquidity

DFII5 · FRED

5-year real yield

The discount rate that binds investment decisions.

Latest reading

2.65

Percent · observation 2026-10-01, published 2026-10-02

Last 24 observations.

Signal

−1.84

Recession-like. A weaker block can only raise the probability.

Use
In model: block 6 score
Model input
change from the previous period
Direction
A rising value raises recession risk.

Where it fits

Monetary Policy, Rates & Liquidity: Model the policy reaction function explicitly rather than treating policy as an exogenous shock. The model averages the standardised signals in each block into a block score, then combines the twelve block scores in a probit. Today the 12-block model reads 1.6%.

Other signals in this block