TIPS Spread Forecasting Higher Inflation? Not Necessarily...

paulkrugman explaining tbi

Hmm. There have been a number of stories recently saying that inflation expectations are on the rise, and it’s true that the TIPS spread — the difference in yields between inflation-protected US bonds and ordinary, nominal bonds — has widened out to a bit more than 2 per cent.

What’s a little puzzling, though, is how that spread has widened…

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