TIP:SHY Ratio

Thanks Patrick for bringing this ratio chart and its correlation with Gold

These Bond Ratios make my head spin

So…lets work this out

When TIPS (Inflation protected bonds ) rise faster than SHY ( 3 Year Bonds)

This means Inflation ?

or Deflation ?

Rising bond prices mean lower interest rates of course BUT

What does a rising TIP mean ?

Both SHY and TIP are rising…just at different rates.

As TIPs go up their interest rate goes down ?

…does this mean inflation or deflation or flatulation or flagulation or maybe flag elation

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