Inflation Guy: Super Hero (guest: Michael Ashton)
The Market Huddle
00:00
What Level of Actual Inflation Is Your Breakeven?
If i buy a nominal treasury to day at three %, then that yield is compensating me for the real interest rate, but also for expected inflation. Tip's bond will pay you the real rate, and then they'll pay you actual inflation. Which is to say, if you got two % or higher actual inflation, then you'd be better off owning tips,. If you got two% or less actual inflation, you'd beBetterOffOwningNominalBonds.
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