Since the Federal Reserve (Fed) expanded its "quantitative easing" (QE) campaign at the conclusion of the March 18 FOMC meeting, a variety of investment vehicles that might benefit from higher inflation, including Treasury Inflation Protected Securities (TIPS), have come under renewed focus. Quantitative easing is non-conventional policy response backed by the Federal Reserve that includes the repurchase of agency, mortgage-backed, and now Treasury bonds in an attempt to lower interest rates and stimulate the economy. The printing of money to facilitate QE raises the risk inflation. While we certainly prefer TIPS to conventional Treasuries, we remain neutral on the sector and would not rush to buy. Here’s why:

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