- 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.