Category Archives: Investing in TIPS

Summary FRNs are getting more intriguing as interest rates rise from near-zero levels. They offer protection against rising interest rates, but not rising inflation. That makes FRNs a good complement to TIPS and I Bonds. But are they a good … Continue reading →

Summary TIPS yields rose Wednesday after Fed Chair Yellen signaled more interest rate increases are coming. Investors at today’s auction got a boost in yield, the highest in a year. The 10-year inflation breakeven rate hit 2.044%, signaling that TIPS … Continue reading →

Summary News is not good for I Bond investors: Inflation is flat over first three months of rate-setting period. Year-over-year ‘headline’ inflation broke through the 2.0% barrier for the first time since June 2014. Core inflation rose 2.2% in 2016, … Continue reading →

Summary A week away, the yield to maturity is estimated at 0.39%, not awful but also not really attractive. The inflation breakeven rate of 1.99% indicates TIPS are no longer ‘cheap’ versus nominal Treasurys. Looking ahead: 5 more auctions of … Continue reading →

Summary Advice: Do nothing for three months. The current 2.76% variable rate is at risk, but the current fixed rate of 0.0% is too low. It’s a waiting game: Watch the variable rate trend and hope for a higher fixed … Continue reading →