April 25, 2025 (NO COMMENTS)

Investors are warming once more to a tariff-driven trade made popular ahead of April’s turmoil, despite the bets in question incurring losses during the recent market selloff.

Investors had opted for long positions in Treasury inflation-protected bonds (Tips), a trade seen as protecting against stagflation — a combination of low growth and high inflation. The bonds provide protection against rising prices and benefit from expectations of prospective rate cuts.

Tips holders, though, suffered