Is the Market Underpricing Inflation? Vanguard Thinks So

Vanguard Asset Management is buying insurance against stickier US inflation after an oil-market gauge, the crack spread, reached a 2022 high. The firm’s active funds team opened a long position in short-dated inflation-protected Treasuries. It is betting that markets underprice the risk that price pressures linger longer than expected. An Oil-Market Signal Bond Investors Rarely