Why Are My Inflation-Protected Bonds Falling When Inflation Is So High?

You would think this would be TIPS’ time to shine.

Instead, the prices of Treasury inflation-protected securities—government bonds that are adjusted to keep up with inflation—have declined this year, even as inflation has soared. 

If TIPS can lose market value during high inflation, what are they good for?

If withstanding inflation is your only goal, buying and holding a newly issued TIPS until it matures will get the job done.

Matt Grossman WSJ 8 October 2022

https://www.wsj.com/articles/why-are-my-inflation-protected-bonds-falling-when-inflation-is-so-high-11665180788


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