Nominal TIP bottomed in September and has gently risen (in stops and starts) since. TIP’s ratio to TLT is a better indicator of when inflation expectations are becoming acute in my opinion because it backs out the overall up move in T bonds.
TIP-TLT by daily view is in a ‘W’ bottom stance with positive divergence. Hey, it’s a start for the inflationistas.
NFTRH and on occasion this website have been charting TIP-TLT for months now in gauging the lack of an inflation problem. Here’s the chart with I might add a bottom panel that subscribers will find interesting given the yield curve’s relevance to gold that we track consistently.
If both of the above line up we may yet have an inflationary outburst and especially in the case of the lower panel, a positive environment cooking up for gold. We are not yet activated as daily technicals and several fundamental parameters have not yet come out of the oven. But as we get into summer… ?
Comments
Log in or sign up to join the conversation.