2018: Recapping The Year In Inflation-Protected Investments

Summary

  • Both real and nominal yields climbed sharply in 2018, especially for shorter terms. The yield curve has dramatically flattened, possibly pointing to an economic slowdown.
  • TIPS auctions were a mixed bag in 2018: the 30-year auctions were unattractive, the 10-year auctions were acceptable, and the 5-year auctions became stellar.
  • The I Bond’s fixed rate climbed to 0.5%, much higher than recent levels. But a higher rate could still be coming in 2019. Hold off on purchases in 2019.

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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