Most likely the TIPS will outperform the I Bond over 5 years, if held to maturity. The 5-year TIPS currently…
David, there is a 5-year TIPS coming up April 23 that I assume you will be writing about. Could you…
Thanks for the detailed explanation. I believe you are saying the "breakeven inflation rate" should reflect the inflation expectation rather…
I am definitely not a fan of purchasing TIPS with negative real yields. My goal is to get a safe…
Tag Archives: personal-finance
Don’t over-think the potential threat of deflation
By David Enna, Tipswatch.com Just about every week, I get a comment or question from readers worried about the dangers of buying a Treasury Inflation-Protected Security on the secondary market with a high (or even not-so-high) inflation index. Why is … Continue reading
Posted in I Bond, Inflation, Investing in TIPS, TreasuryDirect
Tagged bonds, personal-finance, TIPS, Treasury investments
27 Comments
5-year TIPS reopening auction gets a real yield of 2.050%
By David Enna, Tipswatch.com The Treasury’s offering of $21 billion in a reopened 5-year Treasury Inflation-Protected Security — CUSIP 91282CKL4 — generated a real yield to maturity of 2.050%, slightly lower than expected. The auction appears to have been met … Continue reading
Posted in Inflation, Investing in TIPS
Tagged bonds, economy, finance, inflation, investing, personal-finance, TIPS, Treasury investments
9 Comments
Inflation breakeven rate makes 5-year TIPS auction look attractive
Do you believe inflation will average more than 2.12% over the next 5 years? By David Enna, Tipswatch.com The U.S. Treasury on Thursday will offer $21 billion in a reopened 5-year Treasury Inflation-Protected Security, CUSIP 91282CKL4. The result will be … Continue reading
Posted in Bank CDs, Federal Reserve, Inflation, Investing in TIPS, TreasuryDirect
Tagged bonds, economy, inflation, investing, personal-finance, TIPS, Treasury investments
31 Comments
Real yields continue their wild ride
By David Enna, Tipswatch.com If you follow me on Twitter (yes, I still call it Twitter), you might have seen a very recent (June 5) post observing that real yields appeared to be heading back below 2.0%, breaking a two-month … Continue reading
Posted in Federal Reserve, Inflation, Investing in TIPS
Tagged bonds, economy, inflation, investing, personal-finance, Treasury investments
23 Comments
AllianceBernstein suggests a 60/30/10 portfolio to protect against inflation
Investment firm sees ‘higher and spikier’ inflation looming. By David Enna, Tipswatch.com AllianceBernstein, a global investment firm with about $725 billion in assets under management, is now advising its clients to replace the traditional 60% stocks / 40% bonds portfolio … Continue reading
Posted in Cash alternatives, Investing in TIPS, Retirement
Tagged bonds, economy, interest-rates, investing, personal-finance, Treasury investments
42 Comments
Treasury Inflation-Protected Securities 
Dongchen, I always say that the inflation breakeven rate reflects sentiment but is a fairly lousy predictor of future inflation.…