Yields on TIPS are now negative on the 5-yr and 10-yr inflation-indexed note, reflecting the...

|By:, SA News Editor

Yields on TIPS are now negative on the 5-yr and 10-yr inflation-indexed note, reflecting the expectation of investors that inflation will barely scratch 2% for the foreseeable future. A negative yield for new buyers implies they won't be able to match CPI on their investment, negating the effectiveness of the inflation hedge.