Inflation Fears Are Making Linkers a Winning Bond Trade in 2026

The last time oil prices spiked due to war in 2022, the rush to get protection with inflation-linked bonds turned out badly. So far, this time is proving different.

A gauge of global inflation-linked bonds is up 2% in 2026, ranking first out of the 24 key fixed-income indexes tracked by Bloomberg. The strategy is attracting a torrent of cash, with BlackRock Inc.’s $15 billion exchange-traded fund for US Treasury Inflation-Protected Securities pulling in its largest monthly inflows since 2021.