Seeking Alpha

Why We Like Inflation-Linked Bonds

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Includes: BIL, DFVL, DFVS, DLBS, DTUL, DTUS, DTYL, DTYS, EDV, EGF, FIBR, GBIL, GOVT, GSY, HYDD, IEF, IEI, PLW, PST, RINF, RISE, SCHO, SCHR, SHV, SHY, TAPR, TBF, TBT, TBX, TLH, TLT, TMF, TMV, TTT, TUZ, TYBS, TYD, TYNS, TYO, UBT, UDN, USDU, UST, UUP, VGIT, VGLT, VGSH, VUSTX, ZROZ
by: Elga Bartsch
Summary

We see Treasury Inflation-Protected Securities (TIPS) playing a key role as portfolio ballast against both growth shocks and inflation risks.

We see global growth stabilizing and gradually picking up over the next six to 12 months, thanks in part to easy financial conditions.

Markets will focus on the U.S. nonfarm payrolls data for December with the expectation for a still robust labor market.

This post originally appeared on the BlackRock Blog.