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Best-Performing Treasuries Suggest Inflation Threat Is Real

TedTed
in Fund Discussions
FYI: Savvy bond investors aren’t waiting for more evidence of quicker inflation amid the debate over whether the U.S. economy will receive the jolt promised by the Trump administration.

While deliberations drag on about the merits of what’s become known as the Trump reflation trade, investors have been buying protection against a rise in consumer prices this month at the fastest pace since just after Donald Trump’s victory in November.

The iShares TIPS Bond ETF (TIP), the largest exchange-traded debt fund featuring Treasury Inflation Protected Securities, had $547 million of inflows during the past two weeks, according to data compiled by Bloomberg. The 10 largest TIPS ETFs have seen aggregate net inflows in each of the last 10 weeks.
Regards,
Ted
http://www.fa-mag.com/news/best-performing-treasuries-suggest-inflation-threat-is-real-31380.html?print

Comments

  • jerry
    My TIPs fund is not doing very well. What to recent performance look like (1-3 years
  • jerry
    edited February 2017
    My TIPs fund is not doing very well. What do recent performance look like (1-3 years

    Performance for TIP is similarly nothing much (+2% fora year -2% for 6 months
  • hank
    edited February 2017
    Wasn't it a year ago everybody was talking about catastrophic deflation on the horizon?
    I'm getting whip-lashed following the prognosticators.

    TIPS are not easy to comprehend from an investment standpoint. Everyone thinks they understand them. I really doubt it. I never could.

    I'll say ... T. Rowe seems to like intermediate/"limited duration" TIPS. Their allocation funds (like TRRIX) are heavy on them while being nearly devoid of cash. My sense is they're not expecting to earn a whole lot with them - just something above what cash would return over multi-year periods.
  • MikeMMikeM
    I assure you, TIPs have not performed well over the last 3-6 months. Maybe I was early and I'll stay the course, but so far not so good.
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