Investors now bracing for (some) inflation in the US

Investors have purchased 72% of the Treasury Inflation Protected Securities (TIPS) auctioned by the Treasury Department this year, the greatest proportion since at least 2003. James Evans, a New York-based money manager at Brown Brothers Harriman & Co. says “We’ve been through the negative impact of oil and the Fed is still going to be very cautious about raising rates. The foundation is there for higher inflation.” Evans says he’s been buying the TIPS due in 5 to 10 years. Bloomberg says “He’s among a growing number who are embracing the inflation story. Trading in the securities as a percentage of total Treasuries volume reached an all-time high of about 2.75 percent this month, Fed data tracked by Barclays Plc shows.” (VIEW LINK)

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