Category Archives: Investing in TIPS

Summary The TIP ETF has lost more than 6% of its value in a few days, and is falling sharply again this morning. A key reason is that inflation expectations are plummeting, causing the TIP ETF price to fall versus … Continue reading →

Summary The inflation numbers came in close to the consensus, but year-over-year core inflation came in slightly high at 2.4%. Investors are pricing in extremely low inflation over the next 10 years. Is this an overreaction to short-term news? Yes, … Continue reading →

Summary Series I Savings Bonds purchased through April 30 will have a permanent “real yield” of 0.2%, well above TIPS yields of any maturity. I Bonds carry many benefits over TIPS, including tax-deferred interest and rock-solid deflation protection. Another Savings … Continue reading →

Summary The real yield of 0.261% was the lowest for any 29- to 30-year TIPS auction in history, and much lower than the previous record of 0.479%. The coupon rate also set a record low of 0.250%, much lower than … Continue reading →

Summary The term is too long. The risk is too high. The potential reward is too low. An inflation breakeven rate of about 1.72% will make this TIPS appealing for big-money investors, so this auction should get solid demand. But … Continue reading →