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U.S. TIPS market signals rising concerns about disinflation
The article didn't go into the fact that the TIPs also reflect movement towards quality when, "the band is on the run". TIP and TIPs fund were up an average of 1.1% the past week; with the exception being the short duration stuff, which is only about +.5 for the year. On the other hand, long duration TIPs, as with LTPZ are +2.3% for the week and + 17% YTD.
One will likely find a mix of holdings with an active managed TIPs fund; with ranges of duration, as well as a mix of IG corp bonds.
We have held a few TIPs funds since February of this year; and held through the recent selloff mentioned in the article.
I note the above, that TIPs are interesting; as these will have ups and downs for a variety of reasons; and not necessarily related strictly to deflation/inflation expectations.
We hold this sector; in spite of the fact that we continue to find deflation a continued circumstance to monitor.
Comments
The article didn't go into the fact that the TIPs also reflect movement towards quality when, "the band is on the run".
TIP and TIPs fund were up an average of 1.1% the past week; with the exception being the short duration stuff, which is only about +.5 for the year. On the other hand, long duration TIPs, as with LTPZ are +2.3% for the week and + 17% YTD.
One will likely find a mix of holdings with an active managed TIPs fund; with ranges of duration, as well as a mix of IG corp bonds.
We have held a few TIPs funds since February of this year; and held through the recent selloff mentioned in the article.
I note the above, that TIPs are interesting; as these will have ups and downs for a variety of reasons; and not necessarily related strictly to deflation/inflation expectations.
We hold this sector; in spite of the fact that we continue to find deflation a continued circumstance to monitor.
Take care,
Catch