Channel Guy Trader : TIPS Go Negative

For the first time ever, five-year TIPS- Treasury inflation -protected securities, whoe payouts increase with inflation- were sold with a negative yield at auction on Monday. The ultralow rate of -.055% reflects increasing inflation expectations along with record -low Treasury yields. Inflation will have to rise by at least .55% a year for investors who purchased the bonds to avoid losses.

Source: Wall Street Journal Weekend Edition