TIPS versus ISM/OSM

JohnEyles

Full time employment: Posting here.
Joined
Sep 11, 2006
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608
Wondering what the smart people here are thinking on the
whole inflation-linked bond issue ? Both TIPS and ISM/OSM
YTMs are climbing, but of course ISM/OSM is looking scary
on the risk front. Thoughts ?
 
Junk vs. treasuries in a market where junk is wildly overpriced and the market seems to be throwing treasuries out the window. Hmm, what a lovely set of choices...
 
Looks like the July 9 auction of the 10-year TIPS could be setting up for the highest yield in several years. According to Bloomberg, the real yield is currently about 2.8%.

It's interesting that most of the increase in treasury yields that we have experienced over the past couple of months has been due to a rise in real interest rates as opposed to a rise in inflation expectations.
 
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