TIPS yields go negative to inflation – what’s the best move now?

Summary

  • TIPS yields have fallen to their lowest levels in three years.
  • The TIP ETF is up about 6.9% year to date, and it has outperformed the overall bond market.
  • Thinking you need inflation protection? Consider I Bonds instead of TIPS.

On July 5, the Treasury’s estimated real yield on a full-term 10-year TIPS fell below zero for the first time since April 2015. It closed Wednesday at -0.05%, the lowest estimated yield since June 5, 2013.

Do TIPS still make sense as part of your investment portfolio?

Read my analysis at SeekingAlpha.com

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One Response to TIPS yields go negative to inflation – what’s the best move now?

  1. jim says:

    Don’t laugh. I can see 30 year tips bonds going negative. Unfortunately when that even happens I don’t know what I will be buying next. Scary. Scary. Scary. I think I told you in February the 30 year TIPS was a good buy.

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