Investors dip a toe back into Tips despite April losses
US inflation-linked bonds back in vogue as stagflation hedge
Investors are warming once more to a tariff-driven trade made popular ahead of April’s turmoil, despite the bets in question incurring losses during the recent market selloff.
Investors had opted for long positions in Treasury inflation-protected bonds (Tips), a trade seen as protecting against stagflation — a combination of low growth and high inflation. The bonds provide protection against rising prices and benefit from expectations of prospective rate cuts.
Tips holders, though, suffered
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