Thursday’s 5-Year TIPS Auction May Be The Most Attractive In Years

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

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