Category Archives: Investing in TIPS

Summary The 0.5% increase in ‘headline’ inflation was well above the 0.3% consensus estimate. Core inflation rose 0.3%, also above the consensus estimate of 0.2%. Non-seasonally adjusted inflation rose 0.54% in January; what does this mean for holders of TIPS … Continue reading →

Summary 30-year real yields have been climbing, but not as quickly as yields for 5- and 10-year TIPS. The inflation breakeven rate is currently a reasonable 2.15%, making this issue competitive with a nominal 30-year Treasury. Risk/reward just isn’t good … Continue reading →

Summary Your cash in brokerage accounts is probably earning near zero. And your local bank or credit union won’t offer you much more. 4-week Treasurys are paying top-of-the-market yields with a very short term. They will react quickly to rising … Continue reading →

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 →

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 →