Summary
- The real yield could rise above 0.50% for the first time since January 2016. If that trend holds, should you consider an investment?
- The inflation breakeven rate is currently 1.89%, which is reasonable but puts this TIPS in the neutral zone versus a nominal Treasury.
- How strong will the demand be at Thursday’s auction? Watch the yield trends this week before investing.
Of course nothing is for sure, as David has said, the treasury could change the way they compute the fixed…