iShares 0-5 Year TIPS Bond ETF

STIP

Börsenwert 16,6 Mrd. $

Bonds are paying the best yields in years and still dragging portfolios into the red, leaving investors scrambling for a defensive asset that actually defends. A growing group of Wall Street managers thinks the answer involves shorting Treasuries outright.

U.S. bond yields are rising, providing an increasingly attractive alternative to pricey stocks. Trump's unorthodox policy may be causing this trend to accelerate.

The global competition for capital remains the key dynamic keeping yields elevated. Notably, all of the September increase in 10-year Treasury yields came from real yields, as implied by the TIPS market.

Japan, Europe, and the U.S. were feeling the fallout from France, where yields on its benchmark 10-year note climbed closer to 5%, the highest since 2002.

Rolling coverage of the latest economic and financial news

US Treasuries rebounded from the global bond selloff that raced through European markets on Thursday, pulling 10-year yields back from a 24-year high. Bloomberg's Ira Jersey joins to discuss.

Oil soared above $107 a barrel on Monday on news President Trump rejected an Iranian peace proposal and expects to resume US strikes after the November midterms – threatening to keep inflation higher for longer.

With Treasury yields climbing to their highest since 2007, the AI infrastructure buildout is about to get even more expensive. JPMorgan Chase estimated in June that $4.1 trillion in AI-related debt will be issued through 2030, as data center companies and others tied to the AI boom race to build up capacity.

Geopolitics initially took center stage this week, as the United Nations General Assembly kicked off and Chinese President Xi Jinping headed to Washington, but these meetings have ended up offering little more than talk. It was in the bond market where we really saw some action.

Treasury inflation-protected securities tend to outperform during periods of rising inflation, for obvious reasons. STIP focuses on short-term TIPs, reducing overall risk further, with some reduction in income. The fund seems like a particularly pertinent choice right now, with inflation above target, with one recent rate hike, and with another one expected in the coming months.