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Where are you seeing real yield on TIPS? There is certainly that 0.125% positive fixed coupon rate subject to that principal inflation adjustment. Looking at ht
by gkuan 4y ago
Where are you seeing real yield on TIPS? There is certainly that 0.125% positive fixed coupon rate subject to that principal inflation adjustment. Looking at https://www.treasurydirect.gov/instit/annceresult/annceresult.htm https://www.treasurydirect.gov/instit/annceresult/annceresul... TIPS tab, all the recent auctions had a high yield of < 0% with the exception of the 30-year TIPS on 02/28/2022 at a high yield of 0.195%. Secondary market does seem to show some deals on 20+ years with some getting close to 0.50%. TIPSWatch [1] runs the numbers on I Series and TIPS. TIPS yields are improving but I'm not sure it has quite changed the balance yet. Of course, especially in tax deferred/exempt accounts, TIPS have that great attractiveness of principal adjustment (depending on one's inflation view versus nominals) and no annual limits so the time will probably arrive soon enough.
[1] https://tipswatch.com/2022/04/21/new-5-year-tips-auctions-with-real-yield-of-0-340-highest-in-two-years/ https://tipswatch.com/2022/04/21/new-5-year-tips-auctions-wi...
- JumpCrisscross 4y agoYou’re correct. Wish I could edit my original comment. Series I still beats TIPS.
- gkuan 4y agoTIPSWatch also wrote up a comparison between I Bonds and TIPS [1] from September 2021. [1] https://tipswatch.com/2021/09/07/i-bonds-vs-tips-whats-the-best-bet-for-inflation-protection/ https://tipswatch.com/2021/09/07/i-bonds-vs-tips-whats-the-b...