The 5-Year TIPs Have Gone Blutarsky

The yield on the 5-Year Treasury Inflation Protected Bond has dropped to 0.0. Here’s a chart of the 5-year and 10-year TIPs (Felix’s chart is much bigger).

To me, this is pretty astounding. There are investors who are willing to stash their money away for five years, just to get no real return for it. They’re terrified to step off the pier even a tiny bit.

Posted by Eddy Elfenbein on August 11th, 2010 at 2:22 pm

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