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.