5-Year TIPS Reopening: Don’t Let Dip In Real Yields Scare You Away

Summary

  • Real yields for this term have dipped about 8 basis points since August 1. Not a great trend heading into an auction week.
  • But current after-inflation yields above 0.75% are attractive, and would be the highest yield at auction for this term in nearly 9 years.
  • The inflation breakeven rate has dipped below 2.0%, a positive trend for TIPS investors.

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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