No. of Recommendations: 2
Although the article doesn't mention it, the Chinese have recently begun to increase their purchase of TIPS. That increased demand in a relatively small market (relative to Treasuries) has increased the price of TIPS, decreasing their yield.

When the TIPS market was a sleepy, ignored corner of the bond universe, the inflation differential was more accurate.

Wendy
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.