Summary
- Series I Savings Bonds purchased through April 30 will have a permanent “real yield” of 0.2%, well above TIPS yields of any maturity.
- I Bonds carry many benefits over TIPS, including tax-deferred interest and rock-solid deflation protection.
- Another Savings Bond, the EE Bond, is also very attractive under current terms, offering a 3.5% return for anyone who can hold it 20 years.
I’ve been writing about TIPS and I Bonds for nearly 10 years, and there have few times when I Bonds have reached the level of a SCREAMING BUY. Right now, in March 2020, it’s time to say: “I Bonds are a screaming buy.”
I’ve been pounding the table for I Bonds in recent months, often calling them the best inflation-protected investment in the world. But we’ve now reached a point where I Bonds are amazingly superior to similar very safe investments.
Read my full analysis on SeekingAlpha.com
Treasury Inflation-Protected Securities 
The advice seems to have turned out to be premature. TIPS yields have changed dramatically, now all are above 0.5% real.
Yes, the 10-year yield made a surprise surge higher, and the 5-year real yield was holding yesterday at 0.52%, better than the I Bond’s 0.2%. I am standing by my recommendation to buy I Bonds, though, because of the superior protection against deflation. But TIPS at these current levels — which might not last long — are attractive and worth considering. TIPS mutual funds and ETFs also look attractive, for the moment.
Got the max about 5 days ago. Thanks for keeping this site going.