It’s not a typo: TIPS bonds sold with a negative yield (-0.55%) for the first time. But it...

|By:, SA News Editor

It’s not a typo: TIPS bonds sold with a negative yield (-0.55%) for the first time. But it doesn’t mean investors will ultimately receive a negative return. It's a bet that the Fed will be successful in stimulating the economy, boosting inflation and making the TIPS more valuable. Deflationistas, however, say inflation-adjusted yields on longer bonds remain high given economic weakness.