Author Archives: Tipswatch

Summary This was the lowest real yield for a 4- to 5-year TIPS auction since April 2017, when a new TIPS got a real yield of -0.049%. The inflation breakeven rate was 1.69%, a reasonable number that was higher than … Continue reading →

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. … Continue reading →

Summary Headline inflation, which was higher than expected in November, has now topped 2.0% for the first time since November 2018. Core inflation matched expectations but remained moderately high at 2.3% year-over-year. Non-seasonally adjusted inflation declined 0.05%, meaning principal balances … Continue reading →

Summary The Treasury market isn’t attractive right now for small scale investors. A real yield of 0.149% was the lowest for any 9- to 10-year TIPS since an auction in September 2016 generated a real yield of 0.052%. The inflation … Continue reading →

Summary 10-year real yields (meaning yields above inflation) briefly dipped into negative numbers in August, but have climbed 30 basis points since then. The Treasury is offering a 10-year TIPS reopening auction on Thursday, but the real yield still isn’t … Continue reading →

Summary The October inflation report was a mixed bag, with core inflation coming in slightly lower than expected. Increases in energy prices accounted for more than half the overall increase in inflation. Food prices also are rising. Have you noticed? … Continue reading →

Summary The I Bond’s fixed rate is falling from 0.5% to 0.2% for purchases through April 2020, a move that was expected after a year of declining interest rates. Bad news? Disappointing, yes, but I Bonds will remain an attractive … Continue reading →