Inflation Was So Bad That It Even Crushed Inflation-Linked Bonds
- Price drops more than erased payouts on those securities
- Even with recent rebound, bonds head to steepest loss ever
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As the US economy veered toward the biggest inflation shock in four decades, investors flocked to the one corner of Wall Street that seemed a sure-fire refuge: Treasuries that provide extra compensation to keep up with rising consumer prices.
Then the brutal reality of bond-market math shredded that sense of safety.