Category Archives: Investing in TIPS

Summary At Friday’s close, the Treasury’s estimate of the real yield of a five-year TIPS stood at 0.25%, a bit higher than recent numbers. At that yield, the five-year inflation break-even rate would come in at 1.34%, an extremely low … Continue reading →

Summary I Bonds issued before November 1 will carry a permanent fixed rate of 0.50%, creating a real return higher than that of a 5-, 10- or 20-year TIPS. The Treasury will reset this fixed rate on November 1, and … Continue reading →

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 →

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 →

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 →