The Real Returns


Volatile TIPS

Just a few months ago I notices in a post that 5-year TIPS were yielding 0% before inflation. I remarked at that point, “Investors in the 5-year TIPS are accepting government reported inflation numbers as their future return”

Now look what has happened since then. The 5-year TIPS are now yielding 3.92% real before the inflation. The inflation component that Government will have to pay will be extra. The 5-year treasury is yielding 2.10%. Crazy times!

Here is the picture from Pimco.

posted by Me, on Thursday, November 27, 2008 at 4:34 PM


1 Comments:

  1. inflation expectation over next 30 yrs: 0.61 %

    By Blogger cansarnoso, at 12:58 AM  

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