10-Year TIPS: Thursday’s Reopening Is Another Attractive Auction

Summary

  • The real (after-inflation) yield looks likely to climb above 0.80%, a seven-year high for TIPS of this term.
  • The inflation breakeven rate is climbing toward 2.15%, meaning this TIPS is not “cheap” versus a nominal Treasury. But it’s not “expensive,” either.
  • Think real yields will continue climbing? You’ll have three more chances in 2018 to buy a TIPS of this term.

Read my full analysis on SeekingAlpha.com

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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