I am definitely not a fan of purchasing TIPS with negative real yields. My goal is to get a safe…
I Bonds would definitely outperform inflation in an era of severe deflation. But the fixed rate would get wiped out,…
I-bonds would surely shine were the economy to collapse and a deflationary crisis hit.
I purchased the April 2026 TIPS at a very different time, sometime in 2024. The real yield to maturity was…
Category Archives: Investing in TIPS
Variable interest rate on I Bonds will drop to -1.60% on May 1
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% in March on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index declined 0.1%. This is an … Continue reading
Posted in I Bond, Inflation, Investing in TIPS
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Up next: New 5-year TIPS will auction April 23, 2015
The Treasury will announce later this morning that it will be offering a new 5-year Treasury Inflation-Protected Security at auction on Thursday, April 23. This will be CUSIP 912828K33. Update: Here is the announcement. The market for 4- to 5-year … Continue reading
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Here we go again: TIPS yields are diving toward the negative
I hate to be negative, but the current trend in the Treasury market has me thinking evil thoughts. Why? Yields on Treasury Inflation-Protected Securities have dropped to levels negative to inflation for maturities all the way up to 9 years. … Continue reading
Posted in Investing in TIPS
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Deflation breaks (slightly), as US inflation rises 0.2% in February
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% in February on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, US inflation was flat – 0.0%. February’s slight increase … Continue reading
Posted in I Bond, Inflation, Investing in TIPS
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10-year TIPS reopens with a real yield of 0.2%, nearly a 2-year low
The Treasury just announced that its reopening auction of CUSIP 912828H45 auctioned with a real yield (after inflation) to maturity of 0.2%, the lowest yield for an 9- to 10-year TIPS at auction since May 2013. This Treasury Inflation-Protected Security … Continue reading
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Treasury Inflation-Protected Securities 
Thanks for the detailed explanation. I believe you are saying the "breakeven inflation rate" should reflect the inflation expectation rather…