Category Archives: Investing in TIPS

Summary The after-inflation yield is currently running at 0.11%, up from -0.049% at the originating auction in April. The inflation breakeven rate is 1.61%, making this TIPS attractive versus a nominal Treasury. Key question: Are there better, equally safe shorter-term … Continue reading →

Summary Headline inflation rose 0.1% in July, missing the consensus forecast of 0.2% and continuing a trend of downside misses. Non-seasonally adjusted CPI-U declined 0.07% in July, which will lower principal balances for TIPS in August and tamper the November … Continue reading →

Summary The idea: Push inflation-protected money into the future, when you will need it in retirement. Both I Bonds and TIPS are super safe investments that can be purchased with zero commissions and fees. The only risk in purchasing ‘inflation … Continue reading →

Oct. 13, 2017 update: Social Security COLA for 2018 set at 2.0% By David Enna, Tipswatch.com My wife and I were on vacation last week, eating breakfast at an Interstate hotel in southern Wisconsin. She read me a line from … Continue reading →

Summary The coupon rate was set at 0.375%, so buyers got this TIPS at a discount. The inflation breakeven rate came in at 1.76%, which is attractive. Market reaction to the auction is trending negative, with yields rising and the … Continue reading →