Category Archives: Investing in TIPS

Summary Real yields have fallen dramatically since the Treasury’s last rate reset on November 1. The current fixed rate of 0.5% is therefore “above market.” Today’s real yields justify a fixed rate of about 0.2% to 0.3%. I Bond investors … Continue reading →

Summary Energy prices drove overall inflation up sharply in March, giving a boost to the I Bond’s variable rate calculation. I Bonds purchased before May 1 will offer an overall one-year return of 2.4%, but most importantly will carry a … Continue reading →

Summary The current fixed rate of 0.5% is likely to fall on May 1, possibly to as low as 0.2%. I Bond investors can lock in that 0.5% fixed rate for up to 30 years by investing before April 30. … Continue reading →

Summary The after-inflation yield was the lowest for any 9- to 10-year TIPS auction since January 2018. The inflation breakeven rate came in at 1.94%, a fair number that indicates this TIPS is neither cheap nor expensive versus a nominal … Continue reading →

Summary Thursday’s 10-year TIPS reopening looks likely to get a real yield to maturity of around 0.64%, well below January’s 0.919%. Investors will pay a premium, because the real yield will be well below the coupon rate of 0.875%. U.S. … Continue reading →