Category Archives: Investing in TIPS

Summary While 0.4% looks high, core inflation remained in the moderate zone, just above 2.0% over the last 12 months. Energy costs, along with shelter costs, accounted for most of the October increase. There is nothing in today’s report that … Continue reading →

Summary The after-inflation yields on TIPS have been rising sharply over the last month. But TIPS are out-performing the overall bond market, with yields rising at a slower pace. A rise in the 10-year inflation-breakeven rate indicates that investors are … Continue reading →

Summary With the 10-year TIPS yielding just 0.11%, the Treasury couldn’t justify continuing the 0.10% fixed rate. But the I Bond will get a six-month variable rate of 2.76%, making it an attractive 1-year investment, no matter what happens in … Continue reading →

Summary Buy now? You guarantee a one-year return of 1.56%, which is attractive. Wait until November 1? You could lose the 0.1% fixed rate, but earn more money in one year anyway. Either way, this isn’t going to be a … Continue reading →

Summary Buyers had a pay a big premium for the 1.00% coupon rate, about $110.67 for $101.65 of value, when accrued inflation is added in. The inflation breakeven rate came in at about 1.83%, 31 basis points higher than at … Continue reading →