TIPS Yields Are Really Low

By on August 13, 2010

Paul Krugman points out that yields on inflation-protected treasuries are extremely low. According to his chart, the real yield on the 5 year version is now negative, which means investors are willing to take less than the inflation rate in an ultimate bid for safety.

Krugman uses this data point to make a case for increased government spending.

Source: The New York Times
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