Category Archives: Investing in TIPS

Summary August headline inflation came in below the consensus for the month and year. Core inflation was also below the consensus. The current trend in CPI-W would place the 2019 Social Security cost-of-living increase in a range of 2.7% to … Continue reading →

Summary Investors got this reopened TIPS at a discount, because the real yield was higher than the coupon rate of 0.625%. The inflation breakeven rate came in at 1.99%, slipping 13 basis points since the originating auction in April. This … Continue reading →

Summary Real yields for this term have dipped about 8 basis points since August 1. Not a great trend heading into an auction week. But current after-inflation yields above 0.75% are attractive, and would be the highest yield at auction … Continue reading →

Summary 12-month core inflation rose to 2.4%, the highest number since September 2008. Non-seasonally adjusted inflation was essentially flat, meaning minimal principal increases for TIPS and little change in the six-month total that will reset the I Bond’s variable rate. … Continue reading →

Summary Real yields are out of balance with historical norms. A 5-year TIPS is yielding only 13 basis points less than a 30-year TIPS. Are we heading toward a recession? Would TIPS mutual funds benefit? Possibly, if the Federal Reserves … Continue reading →