Inflation fears escalating

Investors are currently buying TIPS (Treasury Inflation Protection Securities) avidly, forcing the price up. TIPS pay the interest rate plus the inflation rate, which makes them a safe haven in inflationary times.

Bizarrely, the price has been risen so high that the yield currently is minus, but buyers still want them, assuming the coming inflation will make them even more profitable.

Comments are closed.

Powered by WordPress. Designed by WooThemes