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
Federal Reserve gives savers another slap in the face
Ouch. But it’s OK. We’re used to it. The Federal Reserve’s Open Market Committee on Wednesday issued minutes from its June meeting, with the headline being: ‘Economy is improving, inflation is rising, but Fed stands by ultra-low interest rates well … Continue reading
Posted in Inflation, Investing in TIPS
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10-year TIPS auctions at 0.249%, lowest yield since May 2013
The Treasury just announced that a new 10-year Treasury Inflation-Protected Security – CUSIP 912828WU0 – auctioned with a yield to maturity of 0.249% and a coupon rate of 0.125%, the lowest rate the Treasury allows on a TIPS. Today’s result … Continue reading
Posted in Investing in TIPS
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Checking in on today’s 10-year TIPS auction
The auction for CUSIP 912828WU0 – a new 10-year Treasury Inflation-Protected Security – will close today at 1 p.m. Noncompetitive bids – like those submitted through TreasuryDirect – must be place before noon. Here’s how this auction is shaping up: … Continue reading
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Before you buy that 10-year TIPS … consider an I Bond
There’s an auction of a new 10-year Treasury Inflation-Protected Security on Thursday, and it looks like it will generate a yield to maturity of about 0.25% (plus inflation), well below the 0.661% buyers of the last new TIPS got six … Continue reading
Posted in I Bond, Investing in TIPS, Savings Bond
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U.S. inflation rose 0.3% in June
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% in June on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, inflation increased 2.1%. The June increase – which hit … Continue reading
Posted in I Bond, Inflation, Investing in TIPS
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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…