TIPS Yields Are On The Rise; Is That Enough To Make Thursday’s 10-Year TIPS Reopening Attractive?

Summary

  • The after-inflation yields on TIPS have been rising sharply over the last month.
  • But TIPS are out-performing the overall bond market, with yields rising at a slower pace.
  • A rise in the 10-year inflation-breakeven rate indicates that investors are pricing in higher inflation, and also that TIPS are getting more expensive versus nominal Treasurys.

The after-inflation yield on a 10-year TIPS is rising again today and is up more than 30 basis points since October 1. Will that be enough to make Thursday’s 10-year TIPS reopening attractive?

Read my full analysis on SeekingAlpha.com

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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