Assets protecting against inflation bugaboo on track to record best gains since 2011 Published: Dec. 29, 2020 at 1:58 p.m. ET By Getty Images
Another year, another double-digit percentage annual gain for U.S. Treasury inflation-protected securities.
That’s a rare feat for a stodgy asset class often considered the province of pensioners fearful of the ravages of higher prices for food, clothes, rent and gas.
Though inflation has struggled to make a return to the U.S. economy, especially after this year’s recession in the wake of the coronarvirus pandemic, expectations for economic growth to normalize next year has bolstered the popularity of inflation-linked assets, especially as the Federal Reserve suggests its more willing to keep interest rates low even if inflation briefly overshoots the central bank’s target.