Bloomberg Surveillance · Tuesday, July 7, 2026
Stephen Major suggests buying Treasury Inflation-Protected Securities (TIPS) outright, particularly in the five-year part of the curve where yields are approaching 2%. He also recommends positioning in the belly of the curve (five to ten years) or selling longer maturities to buy shorter ones, indicating value in these trades and a potential shift towards recommending curve steepness.
“Well, look, the cleanest way to express what's happened with real yields is just to buy the tips. Buy tips outright. In the five year part of the curve, those yields have been moving towards two percent.”
“A more sophisticated way of doing it is to position in the curve, so to own the bonds in the belly, which could be anywhere between five and ten, and just hold them out right. Or to sell the longer maturities, say out of thirty year and.”
“I think that there's value in those kind of trades. And by the way, for me to start recommending steepness. Is quite a big change.”