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These bonds can stand up to any inflation spike from budget battles and tax cuts - MarketWatch

1. TIPS are favorable if inflation expectations deteriorate further. 2. Investors should monitor geopolitical factors affecting inflation potential. 3. Recent TIPS yields are above historical averages, presenting a buying opportunity. 4. Increased investor concern could lead to TIPS outperforming nominal Treasurys. 5. Strong historical correlation exists between inflation expectations and TIPS performance.

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Why Bullish?

The article suggests a significant potential for TIPS to outperform nominal Treasurys, indicating bullish sentiment for DX00 as it can lead to increased investment flows towards TIPS, positively impacting DX00's attractiveness as an inflation hedge.

How important is it?

The article emphasizes TIPS as a strategic investment under inflation risk, directly linking to DX00's potential performance, crucial for investors watching inflation indicators.

Why Short Term?

The article discusses immediate factors impacting inflation that are currently in play, such as potential policy changes and economic indicators, suggesting that effects could unfold relatively quickly.

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