TIPs may be beneficial for investors after the U.S. government’s borrowing spree, but it may not be so great for the taxpayer. One strategist calculated that without inflation, 10-year TIPS are yielding 1.82%, whereas the 10-year Treasury is yielding 3.75%.
- iShares Barclays TIPS Bond (TIP): up 3.2% year-to-date; yield is 4.4%
For more information on Treasury inflation-protected securities, visit our TIPs category.
For full disclosure, Tom Lydon’s clients own shares of TIP.
Max Chen contributed to this article.
