Category Archives: Investing in TIPS

New 10-Year TIPS Auctions With A Real Yield Of 0.548%, Highest In 2 Years

Summary The real yield of 0.548% was the highest for any 9- to 10-year TIPS auction since January 2016. The coupon rate was set at 0.500%, the first time in history that any 10-year TIPS received this coupon rate. The … Continue reading

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New 10-Year TIPS Auction Jan. 18 Is Definitely Worth A Look

Summary The current real yield estimate of 0.54% would be the highest at auction since January 2016. The inflation breakeven rate has inched up to 2.01%, but that’s still attractive enough versus the nominal Treasury’s yield of 2.55%. Looking ahead: … Continue reading

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U.S. Inflation Rose 0.1% In December, Slightly Below Expectations

Summary The headline miss probably isn’t significant, but core inflation rose 0.3%, above the consensus estimate of 0.2%. Non-seasonally adjusted inflation dipped 0.06% in December and I Bond investors may be facing a weak variable rate reset on May 1. … Continue reading

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I Bond Investors: Here’s Your Buying Guide For 2018

Summary Wait at least until the March inflation number is announced on April 11. You then enter a three-week ‘limbo period’ when you can decide to buy before or after the May 1 rate reset. Don’t bother buying I Bonds … Continue reading

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Recapping 2017: The Year In Treasury Inflation-Protected Securities

Summary The year was marked by rising short-term real yields, as longer-term yields held stable or declined. If economic growth continues, longer-term real yields should begin rising. Watch for the 10-year real yield to climb toward 1.0%. The year’s TIPS … Continue reading

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5-Year TIPS Reopening Auctions With A Real Yield Of 0.370%

Summary The after-inflation yield of 0.370% was the highest in two years for any 4- to 5-year TIPS auction. Reaction to the auction looks positive, with the TIP ETF rising minutes after the close, indicating higher demand. The inflation breakeven … Continue reading

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The Year’s Most Attractive TIPS Auction Could Be Coming Dec. 21

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

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