TIPS vs. Nominals

I’ve been writing about inflation-protected investments – Treasury Inflation-Protected Securities and U.S. Series I Savings Bonds – since 2011, and I’ve been investing in these products since 1999. So, how these investments have been doing? I’ll track the performance of every maturing 10-year and 5-year TIPS on this page, as they mature in January, April and July.

To view this at a glance, the annual variance number in the last column shows how the inflation breakeven rate compared to actual inflation. When the numbers are green, a TIPS was the superior investment. When they are red, the nominal Treasury was the better investment.

(Inflation breakeven rates of less than 2.0% are noted in green. In general TIPS out-perform nominal Treasurys when this happens. The 10-year TIPS that matured in July 2020 had only a rounding error (less than 0.1%) of difference.