The difference between yields on 10-year notes and Treasury Inflation Protected Securities (TIPS) was at its widest point since March 9, signaling traders are positing for higher inflation, Bloomberg reported.
The $19.8 billion iShares Barclays TIPS Bond Fund (NYSEArca: TIP) bounced from a 2011 low around $105 a share to above $110 in mid-March although the ETF has pulled back somewhat recently.
For full disclosure, Tom Lydon’s clients own TIP.