Morningstar reports on TIPS ETF flows and CPI inflation protection
What happened
Morningstar reported that hundreds of millions of dollars flowed into TIPS ETFs in September. TIPS, or Treasury Inflation-Protected Securities, are backed by the full faith and credit of the US government and are described as very low risk on the credit front. These bonds are issued in various maturities, and their face value is directly linked to the CPI reading, which measures inflation.
From morningstar.com
Why it matters
TIPS are unique because their face value adjusts based on the CPI reading, allowing them to function as an inflation hedge. Market activity in TIPS and inflation is relevant to the FED's monetary policy decisions.
From morningstar.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.