Investors Brace for Inflation Surge

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Investors Brace for Inflation Surge

(New York)

One way to judge the fear level of investors in regards to inflation is to look at flows into TIPS, or Treasury Inflation-Protected Securities. The bond market had its biggest bout of volatility in around a decade over the last 6 weeks, and one big upshot of that has been a surge into TIPS, as investors seek a safe haven for the strong rise in inflation which they see coming. BlackRock's TIPS ETF, for instance, just hit a new high with $25 bn under management.

FINSUM : Interest in TIPS has a lot to do with the Fed and rates, but also with the government's budget deficit, which is set to widen.

  • bonds
  • inflation
  • tips
  • Treasuries
  • stocks
  • yields

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Bonds

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