Peter Schiff Blames Bidenomics For Surging Bond Yields, Energy Prices: 'What Happens If In A Year...Oil Is $150'
Portfolio Pulse from Shanthi Rexaline
Economist Peter Schiff has warned that rising bond yields and energy prices could indicate worsening inflation. He suggested that if 10-year Treasury yields reach 7% and oil prices hit $150, it could be a sign of inflation. The yield on the 10-year Treasury note recently hit 4.372%, the highest since November 2017, due to investor expectations that the Fed might not reverse its rate hikes soon. Crude oil prices have also risen due to supply-side concerns. The iShares TIPS Bond ETF (TIP) ended Tuesday's session down 0.28% at $105.03.
September 20, 2023 | 8:17 am
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The iShares TIPS Bond ETF (TIP) ended Tuesday's session down 0.28% at $105.03. The ETF could be impacted by rising inflation expectations, as it tracks inflation-protected U.S. Treasury bonds.
The iShares TIPS Bond ETF (TIP) tracks inflation-protected U.S. Treasury bonds. As such, its performance is closely tied to inflation expectations. If inflation continues to rise, as suggested by Peter Schiff, this could negatively impact the ETF's performance, as higher inflation can erode the real return of bonds. This is reflected in the recent drop in the ETF's price.
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IMPORTANCE 70
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