Treasury Inflation-Protected Securities

• 30-year real yields have been climbing, but not as quickly as yields for 5- and 10-year TIPS.
• The inflation breakeven rate is currently a reasonable 2.15%, making this issue competitive with a nominal 30-year Treasury.
• Risk/reward just isn’t good enough to justify an investment, unless you can be sure of holding it for 30 years.

Read my full analysis on SeekingAlpha.com

• Your cash in brokerage accounts is probably earning near zero. And your local bank or credit union won’t offer you much more.
• 4-week Treasurys are paying top-of-the-market yields with a very short term. They will react quickly to rising rates, with no credit risk and no interest rate risk.
• You can buy them with no commission at Treasury Direct and set up automatic reinvestments.

Read my full analysis on SeekingAlpha.com

• The real yield of 0.548% was the highest for any 9- to 10-year TIPS auction since January 2016.
• The coupon rate was set at 0.500%, the first time in history that any 10-year TIPS received this coupon rate.
• The inflation breakeven rate climbed to 2.06%, highest in more than three years.

Read my full analysis on SeekingAlpha.com

• The current real yield estimate of 0.54% would be the highest at auction since January 2016.
• The inflation breakeven rate has inched up to 2.01%, but that’s still attractive enough versus the nominal Treasury’s yield of 2.55%.
• Looking ahead: 5 more auctions of this maturity in 2018.

Read my full analysis on SeekingAlpha.com