Category Archives: Investing in TIPS

Summary At the May 1 reset, the I Bond’s variable rate will fall from 2.76% to 1.96%. We don’t know yet what the new fixed rate will be. Will it rise to 0.1%? Still possible. Should you buy I Bonds … Continue reading →

Summary Inflation report on April 14 will set the I Bond’s six-month variable rate, taking effect May 1. Right now, it looks like the new six-month variable rate could be lower than the current 2.76%. However, it’s possible the May … Continue reading →

Summary 10-year TIPS yields have been holding under 0.50% even as the Federal Reserve raises short-term rates. The inflation breakeven rate dipped to 1.95%, under the 2.00% mark where it had been riding for most of 2017. Inflation expectations are … Continue reading →

Summary A week out, CUSIP 912828V49 is trading with a real yield to maturity of 0.48%. Its inflation-breakeven rate is 2.04%, right in the mid-range of inflation expectations since 2009. Is it a buy? Maybe not at the current yield, … Continue reading →

Summary The 12-month increase of 2.7% was the largest since March 2012. Gasoline prices fell in February, moderating overall inflation. But they’re still up 30.7% over the last year. Non-seasonally adjusted inflation rose 0.31%, which will boost the principal balances … Continue reading →