“Yields on 10-year TIPS traded at their highest since October 2011 on Thursday, at 28 basis points,” according to the report. “Concerns about inflation had pushed the yields into negative territory. That has since reversed for 10-year bonds as inflation readings fall and on higher expectations that the Fed’s bond purchase program will be wound down.”
TIP has a weighted average maturity of about 8.6 years, according to the ETF’s manager, BlackRock.
Including Thursday’s loss, TIP is down 5.9% the past month, compared with a decline of 3.6% for iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF). [TIPS ETF Down More Than Treasuries]
iShares TIPS Bond ETF
Full disclosure: Tom Lydon’s clients own TIP.