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Thanks David! Appreciate the prompt reply, "short position (at least in this expression), however, is mathematically itself a negative value. " thats the "ah-ha" moment, I got it. I might be using this forum more often now!

Hello, #myfirstpost. Can we go a step back and look at the p&l equation? I don't understand why both the nominal and real terms are negative. If I have sold something (treasuries/nominal) to buy something else (TIPS/inflation/real) then surely my payoff will be + what I am long - what I am...