The Macro Brief: Higher Oil, Higher CPI, Lower TIPS?

Treasury inflation-protected securities do not offer a quality near-term hedge for higher consumer prices.

Word on the street is that China's dollar shortage is so severe (which I've been warning about for sometime) that the Chinese authorities are selling both Treasuries and oil for dollars.

With oil hovering around $90/bbl, market participants proclaim Treasury inflation-protected securities (TIPS) are a go to hedge for higher consumer prices, colloquially …