Apocalypse now for bonds? US Tips see yields turn positive

clock

A sign that the great sell-off in bonds could be imminent was seen this week after yields on Treasury Inflation Protected Securities (Tips) turned positive.

Tips passed the latest threshold in their dramatic yield rise since the beginning of the year on Monday when the yield on the 10-year note turned positive. Having risen dramatically from lows, the yield has been trading around 0%, but the "ask" yield registered at 0.068% on Monday, according to Tradeweb. It was the first time since January 2012 that the 10-year Tips yield turned positive, Tradeweb data showed, and it could be a sign that bonds are now out of favour. Yields on 10-year treasuries also rose overnight, and experts have said a lack of inflation is making them dump 10-ye...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Bonds

Global ESG backlash has not eroded demand for UK green bonds

Global ESG backlash has not eroded demand for UK green bonds

This year's auctions oversubscribed

Sorin Dojan
clock 03 July 2025 • 4 min read
Federated Hermes launches Global Short Duration Bond fund just as asset class booms

Federated Hermes launches Global Short Duration Bond fund just as asset class booms

Responding to ‘increased investor demand’

Eve Maddock-Jones
clock 25 June 2025 • 2 min read
Fixed income investment set to rise as bonds hit double digit growth in asset allocation

Fixed income investment set to rise as bonds hit double digit growth in asset allocation

Assets in fixed income up 11%

Patrick Brusnahan
clock 19 June 2025 • 3 min read
Trustpilot
Loading page