US10-Yr TIPS clear zero for first time since pandemic
US 10-year TIPS turned positive yesterday for the first time since the first quarter of 2020. Given that these are inflation protected, this move is significant because it suggests that the real component of the 10-Yr nominal yield is higher than the inflation component. This return makes bonds more desirable for income investors and may impact the risk markets. Besides the psychological boon, it is likely to add pressure to growth assets due to a higher discounting factor. Now that TIPS looks to be clearing zero, it will be interesting to see if stocks, particularly growth stocks, become more sensitive to higher yields.
Source: www.tradingview.com
Russell Shor
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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