5-Year TIPs Back Near 0%

Here’s an eye-opening chart. This shows the yield on the 5-year Inflation-protected Treasury bond. During the crisis, the yield shot up over 4% as there was a rush to liquidity.

Now, thanks to a lifeless recovery, the yield is back near 0% again. That means that in real terms, you’re not making a profit by lending money to the government.

Posted by on September 28th, 2010 at 11:24 am


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