Investors Boost Inflation Bets as Treasuries Tumble on Oil Gains
- ETF inflows exceed 2015 levels as inflation expectations rise
- U.S. 10-year yield rises by most since March 1 as crude surges
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Inflows into inflation-indexed exchange-traded bond funds this year have already exceeded flows for all of 2015, suggesting investors are growing more bullish that inflation will climb toward the Federal Reserve’s 2 percent target.
Investors plunked $2.8 billion into U.S. ETFs holding government securities that protect against rising consumer prices as of April 19, according to data compiled by Bloomberg. That compares with $2.6 billion in all of 2015. A bond-market gauge of the expected pace of price increases over the next decade rose for a third day as oil prices surged to the highest since November.