Author Archives: Tipswatch

Summary Short-term TIPS have attractive real yields, at least compared with longer maturities. Watch out for volatility in the Treasury market next week in the days leading up to the auction. The current inflation breakeven rate is about 1.81%, not … Continue reading →

Summary The sharp increase matched the consensus estimate, so it wasn’t a surprise for the markets. Core inflation remains muted, increasing just 0.1% for the month and 1.7% over the last 12 months. Today’s data won’t alter the Federal Reserve’s … Continue reading →

Summary The after-inflation yield was the highest at auction for this term since January 2016, breaking a string of 10 auctions under 0.50%. The inflation breakeven rate came in at 1.84%, a reasonable number but well off the lows of … Continue reading →

Summary Both the headline and core inflation numbers matched the consensus estimates, so no surprises in today’s numbers. Non-seasonally adjusted inflation declined slightly in October, which will cause a slight drop in TIPS principal balances in December. A December rate … Continue reading →

Summary The real yield could rise above 0.50% for the first time since January 2016. If that trend holds, should you consider an investment? The inflation breakeven rate is currently 1.89%, which is reasonable but puts this TIPS in the … Continue reading →