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Buy short-dated TIPs if you are worried about inflation, says BlackRock's Laipply

Watch on YouTube ↗  |  June 23, 2026 at 22:13  |  10:02  |  CNBC
Speakers
Steve Laipply — Global Co-head of iShares Fixed Income ETFs, BlackRock
George Bory — Chief Investment Strategist of Fixed Income, Allspring Global Investments

Summary

CNBC's Dom Chu discusses the new Fed regime under Chair Kevin Warsh with BlackRock's Steve Laipply and Allspring's George Bory. They cover inflation, oil prices, and rate trajectory uncertainty. Investment ideas include buying short-dated TIPS as break-even inflation drops, extending duration in the front-end curve for higher yields, favoring tax-exempt municipal bonds, and using multi-sector income ETFs like BINC.

  • Fed Chair Warsh shifts from forward guidance to data dependence, adding policy uncertainty.
  • Oil prices down 30% and a potential Iran agreement could ease inflation pressures.
  • Break-even inflation rates have fallen sharply, making short-dated TIPS attractive for hedgers.
  • Front-end yield curve steepens as markets price multiple rate hikes, offering higher yields with small duration moves.
  • Tax-exempt municipal bonds provide higher after-tax yields, lower credit risk, and strong technicals.
  • Multi-sector income ETF BINC is seeing strong flows and offers attractive income per unit of duration.
  • Investors are advised to focus on income and real yields without being aggressive on duration.
Ideas
Steve Laipply Global Co-head of iShares Fixed Income ETFs, BlackRock 5:36
Short-dated TIPS cheap as break-evens fall.
Break-even inflation rates implied by Treasury yields have plummeted recently, making short-dated TIPS cheap for investors who remain worried about inflation. The steep drop in implied inflation creates an attractive entry point for inflation hedges.
Short-dated TIPS HIGH
George Bory Chief Investment Strategist of Fixed Income, Allspring Global Investments 6:38
Front-end curve steep offers higher yields.
The very front end of the yield curve is now very steep as the market prices in multiple Fed rate hikes. Investors do not need to move far out the curve to capture a material increase in yields, making incremental duration extensions and the associated liquidity enhancement attractive.
SHY MED
George Bory Chief Investment Strategist of Fixed Income, Allspring Global Investments 7:40
Municipal bonds offer superior after-tax value.
Tax-exempt municipal bonds offer significant value relative to taxable bonds. After tax-adjusting yields on a like-for-like basis, munis provide more yield, lower credit risk, and strong technical underpinnings across a wide range of issuers.
MUB HIGH
Steve Laipply Global Co-head of iShares Fixed Income ETFs, BlackRock 9:27
BINC captures income per unit duration.
Strong flows are moving into multi-sector income strategies that emphasize income per unit of duration. BINC specifically captures the sweet spot of getting a little more duration while still focusing heavily on income.
BINC MED
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This CNBC video, published June 23, 2026, features Steve Laipply, George Bory discussing Short-dated TIPS, SHY, MUB, BINC. 4 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Steve Laipply, George Bory  · Tickers: Short-dated TIPS, SHY, MUB, BINC