Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Inflation-Protected Treasuries Rose As Global Markets Fell

By James PicernoStock MarketsMar 14, 2022 03:04PM ET
www.investing.com/analysis/inflationprotected-treasuries-rose-as-global-markets-fell-200619941
Inflation-Protected Treasuries Rose As Global Markets Fell
By James Picerno   |  Mar 14, 2022 03:04PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

In another week of widespread selling of the major asset classes, U.S. inflation-indexed Treasuries continued to rise, based on a set of ETFs through Friday, March 11.

The iShares TIPS Bond ETF (NYSE:TIP) gained 0.5% last week, offering a gain as blowback from the Ukraine war continued to roil financial markets around the world. TIP’s advance marks its fifth straight weekly gain.

TIP Weekly Chart
TIP Weekly Chart

Last week’s news that U.S. consumer inflation continues to rise is stoking concern that pricing pressure is still trending higher. The Consumer Price Index rose 7.9% in February vs. the year-earlier level, a new 40-year high. Because the data does not yet reflect global supply shortages triggered by the war in Ukraine, it’s likely that CPI inflation has yet to peak, a prospect that’s providing an ongoing tailwind for TIP.

The rest of the major asset classes fell last week. The selling was especially harsh for stocks in emerging markets, which posted the biggest weekly setback. Vanguard FTSE Emerging Markets Index Fund ETF Shares (NYSE:VWO) tumbled 4.2%, marking the third straight week of hefty loss.

Analysts say that a perfect storm of headwinds is blowing for emerging markets, ranging from tightening global liquidity, a flight to safe assets and slowing economic growth.

The broad-based selling last week continues to weigh on the Global Market Index (GMI.F), which last week shed 2.2%. This unmanaged benchmark, maintained by CapitalSpectator.com, holds all the major asset classes (except cash) in market-value weights via ETF proxies.

ETF Weekly Total Returns
ETF Weekly Total Returns

Turning to the one-year return profile, a broad measure of commodities remains the clear leader for the major asset classes. WisdomTree Continuous Commodity Index Fund (NYSE:GCC) is up 37.9% over the 12-month window through Friday’s close.

Meanwhile, emerging markets stocks (VWO) are now posting the biggest one-year loss for the major assets via a 15.0% year-over-year decline.

GMI.F is slightly in the red over the past year, shedding 1.3%.

ETF Yearly Total Returns
ETF Yearly Total Returns

Looking at drawdowns, most of the major asset classes are posting peak-to-trough declines that are deeper than -10%.

GMI.F.’s current drawdown is -11.3%.

Drawdown Distribution Histories
Drawdown Distribution Histories

Inflation-Protected Treasuries Rose As Global Markets Fell
 

Related Articles

Inflation-Protected Treasuries Rose As Global Markets Fell

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email