Category Archives: Investing in TIPS

Summary The real yield came in 19 basis points below a similar reopening auction in November 2018, just two months ago. The inflation breakeven rate of 1.82% was the lowest for this term since an auction in September 2017, a … Continue reading →

Summary The trend is pointing toward a real yield to maturity of around 0.88%, down substantially from levels in November and December. The inflation breakeven rate is currently at 1.83%, a favorable number that should boost demand for this new … Continue reading →

Summary Bad news for holders of TIPS and I Bonds: Non-seasonally adjusted inflation fell 0.32% in December. Falling energy prices again accounted for almost all the decline in overall inflation. Core inflation remains moderate and steady at 2.2%. The December … Continue reading →

Summary Be patient: Because the I Bond’s fixed rate of 0.50% is locked in through April 30, there is no need to rush to purchase. Is a higher fixed rate possible in 2019? Yes, but the current trend doesn’t make … Continue reading →

Summary Both real and nominal yields climbed sharply in 2018, especially for shorter terms. The yield curve has dramatically flattened, possibly pointing to an economic slowdown. TIPS auctions were a mixed bag in 2018: the 30-year auctions were unattractive, the … Continue reading →