Category Archives: Investing in TIPS

2018: Recapping The Year In Inflation-Protected Investments

Summary Both real and nominal yields climbed sharply in 2018, especially for shorter terms. The yield curve has dramatically flattened, possibly pointing to an economic slowdown. TIPS auctions were a mixed bag in 2018: the 30-year auctions were unattractive, the … Continue reading

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5-Year TIPS Reopening Gets Real Yield Of 1.129%, Highest In Nearly 10 Years

Summary You have to go back to April 2009 to find a 4- to 5-year TIPS auction with a higher real yield. The inflation breakeven rate came in at 1.51%, very low by recent trends and a favorable indicator for … Continue reading

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This Week’s 5-Year TIPS Auction Is A ‘Screaming Buy’

Summary The real yield could be about 1.12%, the highest after-inflation yield in nearly 10 years of 4- to 5-year TIPS auctions. The real yield curve has inverted, with the 5-year TIPS now yielding about 6 basis points more than … Continue reading

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Falling Gas Prices Leave U.S. Inflation Unchanged In November

Summary Headline inflation came in at 0.0% in November and was up 2.2% year-over-year. Core inflation was up 0.2% for the month and 2.2% for the year. Non-seasonally adjusted inflation actually fell 0.33% in November, which means investors in TIPS … Continue reading

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10-Year TIPS Auctions At 1.109%, Highest In Nearly 8 Years

Summary The last time a 9- to 10-year TIPS auctioned with a real yield above 1.00% was on January 20, 2011, at 1.17%. Buyers got this TIPS at a substantial discount because the real yield was well above the coupon … Continue reading

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Is It Time To Buy TIPS ETFs, Mutual Funds?

Summary TIPS funds have taken a hit in 2018, but that damage has been partially ¬†offset by distributions caused by rising inflation. The total return of shorter-term TIPS funds remains positive for the year, thanks to a shorter duration and … Continue reading

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Wednesday’s 10-Year TIPS Auction Still Looks Attractive

Summary The real (after-inflation) yield looks likely to top 1.00% for the first time for any 9- to 10-year TIPS auction since January 2011. The inflation breakeven rate is currently a reasonable 2.02% and should attract strong demand at this … Continue reading

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