- The real yield to maturity looks likely to come in at around 0.22%, well below the yields of 10 months ago.
- The inflation breakeven rate is currently running at 1.68%, a low number that should draw interest in this TIPS from big-month investors.
- For a small-scale investor, the U.S. Series I Savings Bond offers a better yield and better terms. But make your purchases before November 1.
The U.S. Treasury announced last week it will auction $12 billion of a reopened CUSIP 9128287D6 Thursday, creating a 9-year, 10-month Treasury Inflation-Protected Security.
Although TIPS traders may be eyeing this issue as a potential money maker, I’m going straight to the point: Avoid it.