Apocalypse now for bonds? US Tips see yields turn positive

A sign that the great sell-off in bonds could be imminent was seen this week after yields on Treasury Inflation Protected Securities (Tips) turned positive.

Tips passed the latest threshold in their dramatic yield rise since the beginning of the year on Monday when the yield on the 10-year note turned positive. Having risen dramatically from lows, the yield has been trading around 0%, but the "ask" yield registered at 0.068% on Monday, according to Tradeweb. It was the first time since January 2012 that the 10-year Tips yield turned positive, Tradeweb data showed, and it could be a sign that bonds are now out of favour. Yields on 10-year treasuries also rose overnight, and experts have said a lack of inflation is making them dump 10-ye...