Category Archives: Investing in TIPS

Summary The 0.3% increase in the Consumer Price Index fell slightly below the consensus estimate, so no shock to the markets. Core inflation rose at an annual rate of 2.1%, showing that inflation exists outside of rising gasoline prices. Good … Continue reading →

Summary Yes, I didn’t see this coming. Today’s decision is a gift to small-scale investors seeking inflation protection, and should be applauded. If you already bought your full 2019 allocation of I Bonds before April 30, you still get the … Continue reading →

Summary The new schedule adds a second new 5-year TIPS to the 2019 auction lineup. One 30-year TIPS reopening has been removed. The new lineup allows the Treasury to offer larger auctions, more frequently, meeting its needs to raise funds … Continue reading →

Summary Last April, a similar auction generated a real yield of 0.631% and a coupon rate of 0.625%, both better results than today’s. The inflation breakeven rate came in at 1.86%, a fair number in today’s time of muted inflation. … Continue reading →

Summary Above-inflation yields have declined sharply, but still remain “relatively” attractive compared to those of the last 10 years. Five-year bank CDs yielding above 3% are a compelling alternative. I Bonds with the current fixed rate of 0.5% are also … Continue reading →