The TIPs Yield Curve

Here’s a look at the yield curve of inflation-protected Treasury securities, otherwise known as TIPs:

This chart is, in my opinion, pretty stunning. Investors greatly prefer the liquidity and reliability of U.S. government debt to just about everything else.

The media made a lot of noise yesterday about the TIPs auction due in April 2015 going off at a negative yield. (It’s the 12th data point from the left, right near the -0.5% line.) But the TIP due in July 2017 is going for slightly less than 0.0%.

Update: Paul has found the source!

Posted by on October 26th, 2010 at 3:27 pm

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