Tips — still the best, apparently.
As we’ve already discussed in some detail, Tips have been attractive investments in the current environment for several reasons: protection against expected inflation, of course, but also against significant deflation and against volatility.
So although we won’t much add to this, it’s definitely worth highlighting:
Oct. 25 (Bloomberg) — The Treasury sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time at a U.S. debt auction as investors bet the Federal Reserve will be successful in sparking inflation.
The securities drew a yield of negative 0.55 percent, the same as the average forecast in a Bloomberg News survey of 7 of the Fed’s 18 primary dealers. The sale was a reopening of an $11 billion offering in April.
Related links:
Tips are the best – FT Alphaville
Tipsy in the TIPS market - FT Alphaville