Category Archives: Investing in TIPS

Summary The real yield on a 10-year TIPS has risen 29 basis points in recent weeks. At the same time, the inflation breakeven rate has declined – slightly. The driving force? A rise in nominal rates, which will nearly always … Continue reading →

Summary The coupon rate was set at 0.875%, so buyers got it at a discounted price of about $98.76 for $100 of value. The inflation breakeven rate came in at 2.13%, higher than recent auctions. Market reaction to the auction … Continue reading →

Summary Year-over-year inflation rose 2.5%, the highest number in nearly five years. Gasoline prices rose sharply in January, but core inflation still rose 0.3% without gasoline. The Federal Reserve will take note. The report is welcome news for holders of … Continue reading →

Summary A real yield around 0.91% won’t be enough justify an investment in a highly-volatile issue, even for most buy-and-traders. If you’re older than 60, the 30-year term isn’t appealing as a buy-and-hold investment. This TIPS is likely to be … Continue reading →

Summary Short-term TIPS have real yields negative to inflation. An I Bond with a fixed rate of 0.0% will match inflation and provide a better return than a short-term TIPS. For a short-term TIPS fund to outperform, real yields will … Continue reading →