28 October 2008

Pssssst - Here's a Tip for You

The Five Year TIP Yields have crossed up and over the conventional Five Year Treasury Yields for the first time in their admittedly short life span.

That would tend to signal inflation dead ahead. And/or a negative real return on Five Year Treasuries.

It will be interesting to see how those move in the future as the currency crisis unfolds in phase two of the Credit Crisis.

TIP to TIP Spreads