TIPS Yields Turning Negative Send Worrying Signal to Wall Street
- 10-year TIPS yields are negative, lowest since 2016 election
- In declining inflation expectations, some see a dire sign
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The U.S. has its own problem with negative-yielding bonds.
Unlike Germany, Japan and other parts of the world, the U.S. still offers its creditors positive returns. But the so-called real yield on 10-year Treasury Inflation-Protected Securities last month fell below zero and hit the lowest level since just before President Donald Trump’s election in November 2016.