Category Archives: Investing in TIPS

Summary 10-year TIPS yields have been holding under 0.50% even as the Federal Reserve raises short-term rates. The inflation breakeven rate dipped to 1.95%, under the 2.00% mark where it had been riding for most of 2017. Inflation expectations are … Continue reading →

Summary A week out, CUSIP 912828V49 is trading with a real yield to maturity of 0.48%. Its inflation-breakeven rate is 2.04%, right in the mid-range of inflation expectations since 2009. Is it a buy? Maybe not at the current yield, … Continue reading →

Summary The 12-month increase of 2.7% was the largest since March 2012. Gasoline prices fell in February, moderating overall inflation. But they’re still up 30.7% over the last year. Non-seasonally adjusted inflation rose 0.31%, which will boost the principal balances … Continue reading →

Summary The real yield on a 10-year TIPS has risen 29 basis points in recent weeks. At the same time, the inflation breakeven rate has declined – slightly. The driving force? A rise in nominal rates, which will nearly always … Continue reading →

Summary The coupon rate was set at 0.875%, so buyers got it at a discounted price of about $98.76 for $100 of value. The inflation breakeven rate came in at 2.13%, higher than recent auctions. Market reaction to the auction … Continue reading →