Real yield of TIPS climbing

The real yield of TIPS (U.S. Treasury Inflation Protected Securities) have been climbing in recent weeks. The 5-yr, 7-yr, 10-yr and 20-yr real yields are now close to 2.7%, which are new highs for the past 4 years or so.

The following charts show the historical and recent real yields. Data is obtained from the U.S. Treasury website.

2007-06-11-realyieldhistorical-480×283.png

2007-06-11-realyieldrecent-480×283.png

According to Larry’s “rule-of-thumb“, TIPS are now very attractively priced and might actually be a good time for accumulation.

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    One Response to “Real yield of TIPS climbing”

    1. indexfundfan Says:

      M* post on Larry’s shift to 100% TIPS in his IRA. Interestingly, I exchanged part of the Prime MMF sitting in my IRA to VIPSX on 6/11 and exchanged more MMF today to VIPSX and VFICX.