TIPS are up on a day when regular treasuries are down significantly and Congress is threatening default? Obviously, the TIP market and overall treasury market are not concerned about the phony and bogus threat of default, nor is the stock market, whose sell-off today can just as easily be explained by profit-taking, or fear of inflation for that matter, as anything else.
Bottomline: inflation is bad for stocks and horrendous for bonds, and inflation is here. Hunker down. TIPS were made to weather this storm, and they will, but there will be some turbulence along the way.