VTIP News and Press, Vanguard Short-Term Inflation-Protected Securities From 04/26/22

The iShares TIPS Bond ETF has sold off significantly thanks to the rise in bond U.S. bond yields. Risks of a significant equity market decline are rising and any financial market or economic slowdown would cause the Fed to curtail its rate hike plan. The long-term declining trend ...

With U.S. bond market yields rising to levels not seen since 2018–19, market participants appear to be debating whether rates have further room to rise from here or whether the increases now represent a renewed buying opportunity to go long duration. The rise in UST yields thus...

Only one major asset was up last week: REITs. There were some negative developments that might explain the selling. With the drop in commodities and fears about the impact of the China slowdown, the immediate effect should be for inflation and growth expectations to moderate. We didn&...

This month witnessed the 10-year Treasury rates pushing beyond 2.9% for the first time since 2018. Combined with a sizable correction in the equity market, our exposure index surged to the highest level since March 2019 and signaled opportunities for cash deployment. You can use t...

Inflation is skyrocketing, dragging down equity and bond prices down. Inflation hedge assets and funds have performed comparatively well as inflation increases. VTIP is one such fund. An overview of the fund follows. For further details see: VTIP: Safe Holdings, 5.5% Yie...

If China were to continue to pursue a Zero Covid policy amidst rising case counts, supply chains originating in Asia could get shut down again. On the food front, wheat is particularly vulnerable to a prolonged conflict, which has been reflected in the performance of wheat futures. ...

Over the past 20 years, seniors, who only wanted to put their savings in a government bond that could sustain their income needs, were faced with decreasing income. Early last year in 2021, the U.S. Government I Bond interest rate increased to 3.54%. Be aware that if the economy t...

Over the past weeks, gold prices showed a remarkable resilience to the relentless rise in both nominal and real-interest rates. Gold prices were $1,829/ozt by the end of December 2021, when TIPS yields were -1.1%. Gold is pricing in slightly higher long term inflation expectations...

Does the yield curve inversion cause a recession or does it just provide a signal? Is the inversion only about expected future monetary policy? Do other factors also influence the shape of the curve, and if so, can we disentangle the various factors? There is a lot that we don’...

Russia’s President Vladimir Putin has fully miscalculated the West’s response to his invasion of Ukraine. The US Federal Reserve (Fed) looks to have underestimated the underlying price pressures that have accumulated in the US economy. The developing new world order ...