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
30-year TIPS reopening auctions with yield of 1.116%
The Treasury just posted that CUSIP 912810RF7 reopened with a yield to maturity of 1.116%, slightly higher than the market rate earlier this morning. This is a 29-year 8-month TIPS with a coupon rate of 1.375%. Because the yield is … Continue reading
Posted in Investing in TIPS
Leave a comment
Checking in on today’s 30-year TIPS auction
The Treasury’s reopening of CUSIP 912810RF7 at auction today will create a 29-year 8-month TIPS with a coupon rate of 1.375%. Non-competitive bids (like those made through Treasury Direct) must be received by noon; competitive bids close at 1 p.m. … Continue reading
Posted in Investing in TIPS
Leave a comment
U.S. inflation rose a sharp 0.4% in May
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4% in May on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. That creates an inflation rate of 2.1% over the last 12 months, the biggest … Continue reading
Posted in I Bond, Inflation, Investing in TIPS
2 Comments
The TIPS problem: ‘Interest rates rose and inflation did not’
Although I’m not a huge fan of TIPS mutual funds, I own a small stake in the Fidelity Inflation-Protected Bond Fund (FINPX) and I appreciate the candor that comes in each annual and semi-annual report from the fund’s managers, William … Continue reading
Posted in Investing in TIPS
1 Comment
Next up: 30-year TIPS reopens in auction June 19, 2014
I noted yesterday that the Treasury has formally announced that it is reopening CUSIP 912810RF7, creating a 29-Year 8-Month TIPS with a coupon rate of 1.375%. The auction is Thursday, June 19 – non-competitive bids (like those made through Treasury … Continue reading
Posted in Investing in TIPS
1 Comment
Treasury Inflation-Protected Securities 
Thanks for the detailed explanation. I believe you are saying the "breakeven inflation rate" should reflect the inflation expectation rather…