Category Archives: Investing in TIPS

Summary This was the highest after-inflation yield for any 9-to-10 year TIPS auctioned since January 2011. A yield of 0.934% above inflation is moving the return on a 10-year TIPS back into “more normal” levels after years of yield suppression. … Continue reading →

Summary The real (after-inflation) yield looks likely to climb above 0.80%, a seven-year high for TIPS of this term. The inflation breakeven rate is climbing toward 2.15%, meaning this TIPS is not “cheap” versus a nominal Treasury. But it’s not … Continue reading →

Summary Headline inflation rose 0.2% in April, below the consensus estimate of 0.3%. Core inflation was up 0.1% for the month and has increased 2.1% over the last 12 months. That’s the definition of ‘moderate inflation.’ Non-seasonally adjusted inflation was … Continue reading →

Summary I Bonds purchased from May 1 to October 31 will carry a composite rate of 2.52% annualized. Real yields have been rising, which supports the Treasury’s decision to increase the fixed rate to 0.30%, the highest rate reset since … Continue reading →

The after-inflation yield was the highest for any 4- to 5-year TIPS auction since October 2009. The coupon rate was set at 0.625%, the first time any TIPS of this term has had a coupon rate higher than 0.125% since … Continue reading →