Is the Market Underpricing Inflation? Vanguard Thinks So

Nevoral

July 10, 2026

Is the Market Underpricing Inflation? Vanguard Thinks So
Is the Market Underpricing Inflation? Vanguard Thinks So

July 10, 2026

Nevoral

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…
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