Category Archives: Investing in TIPS

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 →

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 →

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 →

Summary The sharp increase matched the consensus estimate, so it wasn’t a surprise for the markets. Core inflation remains muted, increasing just 0.1% for the month and 1.7% over the last 12 months. Today’s data won’t alter the Federal Reserve’s … Continue reading →

Summary The after-inflation yield was the highest at auction for this term since January 2016, breaking a string of 10 auctions under 0.50%. The inflation breakeven rate came in at 1.84%, a reasonable number but well off the lows of … Continue reading →