- The current trend indicates a real yield around 0.88%, which is attractive, at least based on auctions over the last seven years.
- The problem? A 5-year TIPS is currently yielding 1 basis point higher than a 10-year. Why buy a longer-term with a lower yield?
- The inflation breakeven rate is trending at 2.12%, still in the “neutral zone” and below current U.S. inflation of 2.7%.