Anthony Rayner: Inflation protection - the clue's not always in the title

Many clients ask us how we are positioning our portfolios in an environment of rising inflation and, in particular, what we think about index-linked gilts or US Treasury Inflation-Protected Securities (TIPS) in this context. Our base case is for strong growth, rising inflation and rising central bank rates, so we have been focusing on which assets might benefit in an inflationary environment. Taking almost 20 years of data, the chart below looks at conventional US 10-year Treasury yields, US 10-year break-even rates - that is, market expectations of inflation - and the yield on US 10-yea...