…the 5 year TIPS traded at an all time low real yield today (Friday Nov 4, 2011) of -1.047%. The 10 year didn’t quite hit a record but it traded at a real yield of -0.64% . The last time the TIPS yields hit a record low was on August 10, the day the DOW dropped 508 points. In contrast, today the DOW fell a modest 61 points and is over 1000 points higher than it was August 10. In August money was moving into the safety of US Treasuries driving down their yields and carrying the TIPS down with them. Today, it looks like the ECB rate cut put pressure on Treasuries with a similar effect. The TIPS may have lower to go still. If inflation expectations click upward, and the central banks constrain nominal rates, then TIPS will go lower. Amazing, a very safe way to lose money in real terms.