Category Archives: Investing in TIPS

Summary News is not good for I Bond investors: Inflation is flat over first three months of rate-setting period. Year-over-year ‘headline’ inflation broke through the 2.0% barrier for the first time since June 2014. Core inflation rose 2.2% in 2016, … Continue reading →

Summary A week away, the yield to maturity is estimated at 0.39%, not awful but also not really attractive. The inflation breakeven rate of 1.99% indicates TIPS are no longer ‘cheap’ versus nominal Treasurys. Looking ahead: 5 more auctions of … Continue reading →

Summary Advice: Do nothing for three months. The current 2.76% variable rate is at risk, but the current fixed rate of 0.0% is too low. It’s a waiting game: Watch the variable rate trend and hope for a higher fixed … Continue reading →

Summary TIPS yields started and ended the year at relatively high levels, but dipped at midyear. TIPS outperformed the overall bond market as inflation expectations rose, increasing demand for TIPS and softening increases in yield. Are today’s higher yields a … Continue reading →

Summary A bear market for Treasury Inflation-Protected Securities? Not based on this auction, which generated strong demand. The coupon rate of 0.12% fell just below the coupon rate of 0.125%, meaning buyers had to pay a small premium for this … Continue reading →