Markets seeing inflation ahead

Bloomberg is reporting that yields on the the Treasury’s latest 5-year Treasury Inflation-Protected Securities (TIPS) offering have gone negative for the first time ever.  The dollar has also just hit a 15-year low against the yen.  Gold is 5% off its all-time high.

Which means folks are expecting inflation.  Those of you who are drafting contracts may want to keep that in mind if performance is going to take place over any extended length of time.

FGS