Treasury inflation protected securities, along with related exchange traded funds, languish as inflationary pressures remain muted, but bond guru Bill Gross has kept his bullish outlook.

“‘Inflation must be defended from the lower bound’ said Chairman Bernanke. China destroying capacity. Buy TIPS,” Bill Gross posted on the PIMCO twitter feed.

Gross points out that the Fed is shooting for higher inflation, which would boost TIPS.

TIPS are a type of U.S. government security that hedge against inflation by issuing principle that rises along with inflation. These securities only outperform a comparable Treasury security if inflation rises. [Inflation Fighters: TIPS ETFs vs. Gold]

Currently, inflation is still low. According to the Labor Department, the consumer price index was at 1.8% in June over the past 12 months.

TIPS yields have fallen, with yields at 0.42% on the 100year note as of Friday, MarketWatch reports.