Globalcrossroadscapital.com reports on another positive market 1st; TIPS yields go negative

FOR IMMEDIATE RELEASE
Las Vegas, Nevada, United States of America (Free-Press-Release.com) October 31, 2010 -- In 10/10, the US Treasury sold TIPS with a negative yield of 0.550% for the first time ever. WSJ.com also reports the Fed may be "gaining some traction" in trying to kick-start the economy and prevent deflation.

The hedge on treasury bonds like TIPS is that if the inflation rate is higher than the negative yield then investors gain a positive ROI. But if inflation doesn't occur, then investors could end up paying to lend money to the US Government.

The breakeven inflation rate has increased since the Fed reestablished it's bond buying program known as "quantitative easing". The difference between regular Treasury yields and TIPS yield is defined as the "breakeven inflation rate".

The recent demand over supply of TIPS sought by investors was 2.84 times. Anything over 2 times oversubscribed is considered positive. Foreign institutions & banks contributed to 39% of that demand.

Globalcrossroadscapitalc.om is a US Vet-owned, SBA-certified, DUNS-listed IR Media Communications firm who's services include equity markets research & analysis.

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