Category Archives: Investing in TIPS

Summary Investors waiting to complete their I Bond allocation for 2017 have the green light: Buy in November. A fixed rate of 0.1% means these I Bonds should be held longer than I Bonds with a fixed rate of 0.0%. … Continue reading →

Summary How does the Treasury determine the I Bond fixed rate? It’s a mystery. A recent surge in 5-year real yields seems to justify an increase in the fixed rate, and 10-year real yields are also rising. Most I Bond … Continue reading →

Summary The after-inflation yield came in right on target, based on pre-auction trading in this TIPS on the secondary market. The inflation breakeven rate was a moderate 1.92%. This TIPS seems fairly priced versus a nominal 30-year Treasury. Long-term real … Continue reading →

Summary I Bond investors have entered 2017’s limbo period: Buy now, or wait until November? If you view I Bonds as a short-term investment, buying now seems to be the wisest decision. Investors longing for a higher fixed rate than … Continue reading →

Summary Buy-and-trade investors ought to be at least a little frightened; 30-year TIPS are very volatile investments. The real yield for this TIPS is currently trading very close to the 0.875% coupon rate. It should auction at close to par … Continue reading →