Category Archives: Inflation

Should TIPS holders root for higher inflation?

Posted on April 17, 2013 by

Interesting article today in the Wall Street Journal, with the enticing headline: ‘TIPS Investors Rush for Exit.’ Here’s the premise: A surprise drop in gasoline prices has jolted a corner of the bond market, easing investors’ inflation fears and triggering … Continue reading →

Posted in Inflation, Investing in TIPS | 1 Comment

U.S. inflation fell 0.2% in March

Posted on April 16, 2013 by

The Bureau of Labor Statistics reported this morning that ‘headline’ inflation – the Consumer Price Index for All Urban Consumers (CPI-U) – fell 0.2% in March on a seasonally-adjusted basis, partly reversing the sharp 0.7% increase in February. That means … Continue reading →

Posted in Inflation | 1 Comment

Higher gas prices pushed consumer inflation up 0.6% in September

Posted on October 16, 2012 by

The Labor Department today reported that ‘headline’ inflation – the measure used to adjust the principal on TIPS and the interest rate on I Bonds – rose a strong 0.6% in September, the second strong increase in two months. Read … Continue reading →

Posted in I Bond, Inflation | Leave a comment

Are TIPS a good investment in 2012?

Posted on September 17, 2012 by

I get that question a lot. My quickest reaction is: ‘No.’ Treasury Inflation-Protected Securities were a really good investment back in 1999, when you could have bought a 30-year TIPS with a yield to maturity of 4.138% – that means … Continue reading →

Posted in I Bond, Inflation, Investing in TIPS | 14 Comments

An update on U.S. inflation: Nowhere to be found

Posted on August 20, 2012 by

I was out of town last week and didn’t get a chance to write about the U.S. inflation rate in July, which was unchanged from June, in other words … zero inflation in July. This is the ‘headline’ inflation rate … Continue reading →

Posted in I Bond, Inflation, Investing in TIPS | 5 Comments

Bernanke: ‘It is arguable that the interest rates are too high’

Posted on February 29, 2012 by

Federal Reserve Chairman Ben Bernanke laid out his argument for super-low interest rates today in an appearance before the House Financial Services Committee. His opening statement included this (insert adjective here) statement on U.S. interest rates: “It is arguable that … Continue reading →

Posted in I Bond, Inflation | 2 Comments

Coming Thursday, Aug. 18: Reissue of a 5-year Treasury Inflation-Protected Security

Posted on August 15, 2011 by

We knew this was coming, of course, and today we got the official announcement by the U.S. Treasury. On Thursday, the Treasury will auction a reissue of CUSIP 912828QD5, which was originally issued on April 15, 2011 and matures on April … Continue reading →

Posted in I Bond, Inflation, Investing in TIPS | Leave a comment

Next auction: Reissue of a 5-year TIPS, Aug. 18, 2011

Posted on August 1, 2011 by

Update: Buy this issue? I say, no. The U.S. Treasury will auction a reissue of a 5-year Treasury Inflation-Protected Security on Aug. 18, 2011. It will be interesting to see how much buyer interest this auction can raise. My point … Continue reading →

Posted in I Bond, Inflation, Investing in TIPS, Savings Bond | Leave a comment

Fed chairman Bernanke: Inflation is not ‘imminent’

Posted on June 22, 2011 by

Even though current inflation is running at 3.6% annually, it’s probably true that inflation is going to be held down near-term by a very weak U.S. economy. Here is the Reuters report on the ‘transient’ inflation issue: http://www.reuters.com/resources_v2/flash/video_embed.swf?videoId=216213419 Slower economic … Continue reading →

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U.S. inflation is heating up, right?

Posted on June 15, 2011 by

You might wonder based on conflicting news reports today (June 15),  when the U.S. released its monthly data on consumer prices. From FT.com: Core US consumer prices rose at their fastest rate for five years in May, making it almost … Continue reading →

Posted in Inflation, Investing in TIPS | 4 Comments