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.
Yes, in this case it was $10,000. I will add to that longer-term position if I see the opportunity. Of…