Summary
- Current trends are pointing at a real yield above 0.65%, the highest for any 4- to 5-year TIPS auction since October 2009.
- This TIPS will outperform a U.S. Series I Bond over five years and is very competitive with best-in-the-nation bank CDs.
- The inflation breakeven rate should come in slightly higher than 2.0%, putting this TIPS in the “neutral” range versus on nominal Treasury.
Read my full analysis at SeekingAlpha.com
Of course nothing is for sure, as David has said, the treasury could change the way they compute the fixed…