HSBC strategist Dhiraj Narula says HSBC finds long-dated US TIPS attractive. TIPS real yields are at multi-decade highs after a sharp rise in recent weeks while inflation breakevens have plunged and remain low despite oil gains tied to renewed Middle East tensions. Narula attributes the divergence mainly to several Fed officials delivering firmer price-stability signals and reaffirming commitment to a 2% inflation target.

2026-07-22

HSBC strategist Dhiraj Narula says HSBC finds long-dated US TIPS attractive. TIPS real yields are at multi-decade highs after a sharp rise in recent weeks while inflation breakevens have plunged and remain low despite oil gains tied to renewed Middle East tensions. Narula attributes the divergence mainly to several Fed officials delivering firmer price-stability signals and reaffirming commitment to a 2% inflation target.