Category Archives: Investing in TIPS

10-Year Real Yields Are Rising, But Still Not Attractive

Summary The Treasury will reopen CUSIP 912828ZZ6 on Thursday, creating a 9-year, 8-month TIPS. The current market for this TIPS shows it with a real yield (after inflation) to maturity of -0.85% and a price of about $109.85 for $100 … Continue reading

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Defying Forecasts, Inflation Disappeared In October

Summary Both all-items and core inflation came in at 0.0% for the month, less than the consensus forecasts. The BLS called the report “mixed,” reflecting large variances in price increases or decreases across the economy. For holders of TIPS and … Continue reading

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I Bond’s Fixed Rate Holds At 0.0%; EE Bonds Still Double In 20 Years

Summary The U.S. Treasury did the right thing today, keeping I Bonds and EE Bonds very attractive investments, for different reasons. I Bonds purchased from November 2020 to April 2021 will earn a composite annualized interest rate of 1.68% for … Continue reading

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New 5-Year TIPS Gets Real Yield Of -1.32%, Lower Than Expected

Summary The result, which dipped below recent market indicators, was the second-lowest real yield for any TIPS auction of this term. Investors had to pay a sizable premium for this TIPS, about 7.5% above par value, to collect a coupon … Continue reading

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This New 5-Year TIPS Might Look Ugly, But It Has Appeal

Summary The U.S. Treasury on Thursday will offer $17 billion at auction in a new 5-year Treasury Inflation-Protected Security, CUSIP 91282CAQ4. The real yield to maturity and coupon rate will be set by the auction, but we already know, the … Continue reading

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