Category Archives: Investing in TIPS

10-Year TIPS Reopens At Auction With A Real Yield Of 0.450%

Summary The after-inflation yield of 0.450% was 20 basis points higher than where 10-year TIPS were trading on September 8. Today’s investors benefited from the Federal Reserve’s announced intention Wednesday to unwind its bond portfolio and continue gradually increasing short-term … Continue reading

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10-Year TIPS Will Reopen Thursday, Here’s What To Expect

Summary The current real yield of 0.34% would fall below results for the last five 9- to 10-year TIPS auctions. At that yield, investors would have to pay a slight premium to par value. The current inflation breakeven rate of … Continue reading

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August Inflation: Better News For TIPS, I Bonds And Social Security Benefits

Summary CPI-U increased 0.4% in August, an upside surprise that broke a string of smaller-than-expected numbers. Non-seasonally adjusted inflation increased 0.3%, which will boost TIPS principal balances in October and brings the I Bond’s future variable rate up to 1.4%, … Continue reading

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5-Year TIPS Reopening Auctions With A Real Yield Of 0.117%

Summary The after-inflation yield for CUSIP 912828X39 came in right at the expected number, rising 12 basis points since the originating auction on April 20. The inflation breakeven rate was 1.66%, which is attractive when measured against nominal Treasurys. This … Continue reading

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5-Year TIPS Will Reopen August 24; Is It Worth A Look?

Summary The after-inflation yield is currently running at 0.11%, up from -0.049% at the originating auction in April. The inflation breakeven rate is 1.61%, making this TIPS attractive versus a nominal Treasury. Key question: Are there better, equally safe shorter-term … Continue reading

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July Inflation: Bad News For TIPS, I Bonds And Social Security Benefits

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

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Why Would Anyone Buy Inflation-Protected Investments?

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

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