Looking at the TIPS Yield Curve

Here’s the current yield curve of Treasury Inflation Protected Securities, which means you get the yield plus the CPI.

Looking at this, I can’t help but think it’s the Treasury equivalent of the Internet bubble from 10 years ago.
I’m not a bond investor but I won’t even think of investing in any bond that had a real return of less than 2%. According to the bend of the current curve, the TIPS yields won’t reach 2% for another four years. They won’t even turn positive for another two years.

Posted by Eddy Elfenbein on March 11th, 2010 at 10:52 am

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