Summary
- Over the last year, real yields on shorter-term TIPS have dropped more than 100 basis points.
- In contrast, the real yield on a U.S. Series I Savings Bond has dropped just 30 basis points, making it the preferable investment.
- Coming Thursday: The U.S. Treasury will reopen at five-year TIPS at auction. I advise you to avoid it.
The U.S. Treasury will be offering $15 billion in a reopened five-year Treasury Inflation-Protected Investment on Thursday. Over the last several years, this December TIPS auction has been one of the most attractive each year. Not this year, though.

IBIL currently holds only two 10-year TIPS. In 2030 that fund will purchase new 5-year TIPS issues (assuming current issuing…