Category Archives: Investing in TIPS

Summary Hurricane-boosted gasoline prices have caused a two-month surge in overall inflation. The Social Security cost-of-living adjustment will be 2.0% for 2018, lower than the Social Security Administration’s projection but higher than looked likely three months ago. The I Bond … Continue reading →

Summary The after-inflation yield of 0.450% was 20 basis points higher than where 10-year TIPS were trading on September 8. Today’s investors benefited from the Federal Reserve’s announced intention Wednesday to unwind its bond portfolio and continue gradually increasing short-term … Continue reading →

Summary The current real yield of 0.34% would fall below results for the last five 9- to 10-year TIPS auctions. At that yield, investors would have to pay a slight premium to par value. The current inflation breakeven rate of … Continue reading →

Summary CPI-U increased 0.4% in August, an upside surprise that broke a string of smaller-than-expected numbers. Non-seasonally adjusted inflation increased 0.3%, which will boost TIPS principal balances in October and brings the I Bond’s future variable rate up to 1.4%, … Continue reading →

Summary The after-inflation yield for CUSIP 912828X39 came in right at the expected number, rising 12 basis points since the originating auction on April 20. The inflation breakeven rate was 1.66%, which is attractive when measured against nominal Treasurys. This … Continue reading →