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These Inflation-Fighting Bonds Are Cheap Right Now: TIPS
FYI: If there is one thing on which most everyone on Wall Street agrees, it’s that U.S. inflation is dead — or at least in suspended animation.
By comparing yields on conventional 10-year Treasurys TMUBMUSD10Y, -1.13% with yields on equivalent Treasury Inflation Protected Securities, or TIPS, it’s possible to infer the amount of inflation that investors expect for the life of a particular series of bonds. When the numbers are crunched, it appears that an annual inflation rate of about 1.5% is currently being priced in for the next decade. Regards, Ted http://www.marketwatch.com/story/these-inflation-fighting-bonds-are-cheap-right-now-2016-03-15/print
