Category Archives: Investing in TIPS

Summary The new schedule adds a second new 5-year TIPS to the 2019 auction lineup. One 30-year TIPS reopening has been removed. The new lineup allows the Treasury to offer larger auctions, more frequently, meeting its needs to raise funds … Continue reading →

Summary Last April, a similar auction generated a real yield of 0.631% and a coupon rate of 0.625%, both better results than today’s. The inflation breakeven rate came in at 1.86%, a fair number in today’s time of muted inflation. … Continue reading →

Summary Above-inflation yields have declined sharply, but still remain “relatively” attractive compared to those of the last 10 years. Five-year bank CDs yielding above 3% are a compelling alternative. I Bonds with the current fixed rate of 0.5% are also … Continue reading →

Summary Real yields have fallen dramatically since the Treasury’s last rate reset on November 1. The current fixed rate of 0.5% is therefore “above market.” Today’s real yields justify a fixed rate of about 0.2% to 0.3%. I Bond investors … Continue reading →

Summary Energy prices drove overall inflation up sharply in March, giving a boost to the I Bond’s variable rate calculation. I Bonds purchased before May 1 will offer an overall one-year return of 2.4%, but most importantly will carry a … Continue reading →

Summary The current fixed rate of 0.5% is likely to fall on May 1, possibly to as low as 0.2%. I Bond investors can lock in that 0.5% fixed rate for up to 30 years by investing before April 30. … Continue reading →

Summary The after-inflation yield was the lowest for any 9- to 10-year TIPS auction since January 2018. The inflation breakeven rate came in at 1.94%, a fair number that indicates this TIPS is neither cheap nor expensive versus a nominal … Continue reading →