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Market Update

Investors Flock to Inflation Protection

Inflation-protected bonds are rallying as investors see price pressures sticking around.

As evidence grows that inflation pressures are proving stickier than many expected, investors have been flocking to inflation-protected bonds.

Treasury Inflation-Protected Securities--better known as TIPS--were the best-performing corner of the bond market in October and are leading fixed-income returns so far for 2021. The Morningstar US TIPS Index returned 4.95% for the year to date and 1.76% in October alone, more than any other fixed-income category this year.