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Exploring the Potential of the TIPS Market in an Inflationary Environment
The tips market can serve as a diversifier or addition to a portfolio in an inflationary environment with low growth./nBreak even inflation can rise or real interest rates can be held higher for longer to resolve an inflationary dynamic in the tips market./nReal interest rates have risen significantly, reflecting the need for higher real rates for longer./nLong-dated tips offer attractive long-term returns as their yields increase.