Tips securities and virus update

Treasury inflation protected securities or tips can trade with a negative yield due to the Nominal yield being below Inflation rate.This a long way around of saying real yields are negative. I have mentioned a few studies and examples of the inverse correlation between real rates and Gold so as Long as Real rates can stay below zero trend in Gold is higher.

Below find graph of the 5-,-10 and 30 year tips yield,all below zero,Now if inflation would ever accelerate those holding negative yielding tips would see yields turn positive

Virus Updates all lean a bit positive ( Via Bloomberg and Press conference)

  • Spain smallest number of New Infectious since March 20th and talking
  • New York State reported 758 deaths from the virus Sunday, down from the 783 reported the previous day
  • Cuomo said he will be speaking today with CT and NJ Governors on a coordinated plan to reopening the states.
  • WHO said 70 vaccines being tested with 3 in human trials

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