TIPS Yields Have Slumped Back To Pre-Election Levels

From Tyler Durden: US real yields have collapsed since shortly after The Fed hiked rates, with today’s decline erasing the entire post-election Trumpflation surge in TIPS yields.

As Bloomberg reports, so-called real yields hit an intermediate peak the day after the Federal Reserve’s December interest-rate increase, and have since proceeded to grind lower amid rising doubts that President Donald Trump’s suite of policies will be as pro-growth as initially thought.

Still, it’s probably nothing…

The iShares Barclays TIPS Bond Fund ETF (NYSE:TIP) was trading at $113.71 per share on Friday afternoon, down $0.24 (-0.21%). Year-to-date, TIP has gained 0.48%, versus a 2.61% rise in the benchmark S&P 500 index during the same period.

TIP currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 14 ETFs in the Inflation-Protected Bond ETFs category.


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