Category Archives: Investing in TIPS

Unique Opportunity: I Bonds As An 11-Month Investment

Summary We now know the I Bond’s next inflation-adjusted variable rate, which is rising to 1.68% from the current 1.06%. The permanent fixed rate, currently 0.0%, will be reset on November 1, but is highly likely to remain at 0.0%. … Continue reading

Posted in Investing in TIPS | Leave a comment

Inflation Report Sets Social Security COLA At 1.3%; I Bond’s Variable Rate Rises To 1.68%

Summary Social Security payments will increase 1.3% in January, adding about $20 a month for the average recipient. However, a hike in Medicare premiums could wipe out part of that increase. The inflation-adjusted variable rate for U.S. Series I Savings … Continue reading

Posted in Investing in TIPS | Leave a comment

Short-Term Treasury ETFs No Longer Make Investment Sense

Summary After a strong run over the last 12 months, these short-term Treasury ETFs are now yielding very close to zero. There’s little upside potential and little yield benefit over Treasury money market funds, which lock in your share price … Continue reading

Posted in Investing in TIPS | 2 Comments

10-Year TIPS Reopening Gets A Real Yield Of -0.966%, Lowest In History

Summary The real yield of -0.966% was slightly higher than where this TIPS was trading on the secondary market just minutes before the auction’s close. The inflation break-even rate settled in at 1.65%, which looks like a reasonable number. Inflation … Continue reading

Posted in Investing in TIPS | Leave a comment

10-Year TIPS: Keep An Eye On The Inflation Breakeven Rate

Summary The 10-year real yield has dipped deeply negative, to nearly 1% below inflation. But that reflects the bond market’s very low nominal yields. This TIPS’ inflation breakeven rate of about 1.67% is still appealing. For the first $10,000 you … Continue reading

Posted in Investing in TIPS | Leave a comment