No. of Recommendations: 1
<At the end of last year the bond market was expecting to see roughly five years of deflation, followed by 5 years of modest inflation, adding up to almost a zero net change in the price level over the subsequent 10 years.>

That was a fantastic opportunity to lock in high fixed rates on TIPS, as the TIPS fixed rate temporarily exceeded the yield of the conventional Treasury. We discussed that on this board at the time.

DH and I took advantage of this to buy a bunch. I don't think we will see this opportunity again soon, if ever.

I still think the market is underestimating the long term inflation rate. But the TIPS fixed rate is no longer attractive.

Wendy
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