Author Archives: Tipswatch

Summary Headline inflation rose 0.1% in July, missing the consensus forecast of 0.2% and continuing a trend of downside misses. Non-seasonally adjusted CPI-U declined 0.07% in July, which will lower principal balances for TIPS in August and tamper the November … Continue reading →

Summary The idea: Push inflation-protected money into the future, when you will need it in retirement. Both I Bonds and TIPS are super safe investments that can be purchased with zero commissions and fees. The only risk in purchasing ‘inflation … Continue reading →

Summary News media widely reported that a 2.2% increase in Social Security benefits is likely in January 2018. How is the COLA determined and how could anyone project it in early July? We need three months of data – inflation … Continue reading →

Summary The coupon rate was set at 0.375%, so buyers got this TIPS at a discount. The inflation breakeven rate came in at 1.76%, which is attractive. Market reaction to the auction is trending negative, with yields rising and the … Continue reading →

Summary This new TIPS could have the highest real yield since January 2016, but keep an eye on yield trends – they have been falling. The current inflation breakeven rate of 1.78% makes this TIPS attractive versus nominal Treasurys. A reason … Continue reading →