If interest rates are planning to rise wouldn't that cause inflation to drop (not that we really have any inflation now). I hear that PIMCO is dumping lots of money in TIPS lately but I'm having a hard time understanding why? Any thoughts?
I just sold my last batch recently. Almost all TIPS are way overpriced right now. Besides, if the rates will go up, your TIPS prices will fall (dividends will not make up for losses). Unless you just want to play some kind of short term game, I would not recommend it right now.