Are You Inflation Protected?

April 25, 2022

Are you seeing this?

Inflation Protected Treasuries are outpacing nominal yielding Treasury Bonds. We're now at the highest levels since the Great Financial Crisis.

For those new to fixed income, this is the bond market expressing its thoughts about inflation.

New 14-year weekly closing highs today.

One thing I'd like to point out is that historically the stock market doesn't like volatility in the bond market. In either direction.

So if you're wondering what's keeping pressure on stocks, I think bonds have something to do with that.

But in this chart above, we're specifically looking at the inflationary expectations by bond market participants.

This is historically good data. This is the smart money.

So far it's proven to be just that, once again.

So we'll continue to monitor these developments for more color on this really strong trend.

Premium Members can click here to Download this Week's Bond Report. Just scroll down to the bottom to download the full deck.

Filed Under: