I Bonds Vs. TIPS: Look At The Facts, Choose I Bonds

Posted on December 16, 2019 by Tipswatch

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.

Read my full analysis on SeekingAlpha.com

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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