Author Archives: Tipswatch

Summary A new 5-year Treasury Inflation-Protected Security — CUSIP 912828ZJ2 — will be created at auction Thursday. This TIPS looks likely to get a real yield to maturity in the range of -0.20% to -0.30%, but a firm prediction is … Continue reading →

Summary Real yields for TIPS are now negative across the entire maturity spectrum: 5-year, 10-year and 30-year. The Treasury has no reason to keep the I Bond’s fixed rate above 0.0% when the 10-year TIPS is yielding -0.50%. Act before … Continue reading →

Summary U.S. Series I Savings Bonds purchased before May 1 will pay a composite interest rate of 2.22% for six months, and then 1.26% for six months. I Bonds remain the world’s best inflation-protected investment, especially if you purchase them … Continue reading →

Summary A unique feature of I Bonds is that yields are set for six-month periods and won’t change. Investors can now lock in the current yield of 2.22% for six months. Deflation is coming, but shouldn’t be reflected harshly in … Continue reading →

Summary This was an investor-friendly auction: The real yield of 0.68% was much higher than looked likely a week ago. The inflation breakeven rate of 0.43% is “out-of-normal” low and seems to be pricing in a dire economic future. Treasury … Continue reading →