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When Bond Yields Exceed 4%, UK Governments Fall

322 Views04 Mar 2023 09:46
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SUMMARY
  • In 2020 and 2021, investors opted for TIPS over conventional bonds, yet over the past year, they have moved the other way.
  • The TIPS ETF has fallen from $40bn of assets to $20bn, while the long bond ETF has doubled from $15bn to $30bn.
  • The loud and clear message from this shift is that investors are woefully unprepared for an inflation shock.
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  • When Bond Yields Exceed 4%, UK Governments Fall
    04 Mar 2023
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