Category Archives: Investing in TIPS

Inflation Report Sets Social Security COLA At 1.6%; I Bond’s Variable Rate Rises To 2.02%

Summary The Social Security COLA of 1.6% for 2020 is well below this year’s increase of 2.8%, reflecting the dip in overall U.S. inflation this year. The variable interest rate for U.S. Series I Savings Bonds will rise to 2.02% … Continue reading

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10-Year TIPS Reopening Gets Real Yield Of 0.174%, Lowest In 3 Years

Summary Real yields are near Treasury-estimate lows for 2019, but have popped slightly higher in recent weeks. Today’s auction yield of 0.174% meant that investors had to pay a premium to get a 0.250% after-inflation coupon rate. The inflation breakeven … Continue reading

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Avoid This Week’s 10-Year TIPS Reopening

Summary The real yield to maturity looks likely to come in at around 0.22%, well below the yields of 10 months ago. The inflation breakeven rate is currently running at 1.68%, a low number that should draw interest in this … Continue reading

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August Inflation: What It Means For Social Security, TIPS And I Bonds

Summary Headline inflation numbers matched the consensus forecast, but core inflation ran higher than expected. Gasoline prices were down, moderating overall inflation. With one month of data remaining, the Social Security COLA looks likely to increase 1.6% to 1.8% for … Continue reading

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Ridiculous Fact: EE Bonds Are Now A Stellar Long-Term Investment

Summary The lowly EE Savings Bond now offers substantial yield advantages over similarly safe investments of the same term around the world. EE Bonds make sense only for investors who can hold them 20 years, creating an effective yield of … Continue reading

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