Monthly Archives: April 2011

5-year TIPS auctions with base yield of negative 0.18%

The results are in for the 5-year Treasury Inflation-Protected Security auctioned April 21, 2011. The CUSIP is 912828QD5. As expected, the 5-year TIPS carries a coupon rate of 0.125%. But because of high demand, bidders are paying $101.75 for $100 … Continue reading

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TIP ETF gets slammed

Glen Bradford is trashing the TIP ETF today on SeekingAlpha.com: Frankly, anyone that thinks buying the iShares Barclays TIPS Bond Fund (AMEX: TIP) is going to protect you from inflation is a joker. If you want to protect yourself from … Continue reading

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Negative base interest rate on 5-year TIPS?

Update: This 5-year TIPS was auctioned April 21 with a base yield of -0.18%. ——————————————————— Although the base rate of the 5-year TIPS being auctioned Thursday (April 21) will be ‘positive’, the resulting yield from the auction will be negative. … Continue reading

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Yes or no on the 5-year Treasury Inflation-Protected Security?

On Thursday, April 21, the Treasury plans to sell $14 billion in five-year inflation-protected securities. The issue date is April 29. The TIPS mature April 15, 2016. Cusip number is 912828QD5. Here is a .pdf with full details of the … Continue reading

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S&P goes negative on Treasuries, and TIPS go … positive?

So Standard & Poors issues a negative outlook on U.S. Treasuries this morning, and the stock market falls into turmoil. The Dow average ended up rallying to close at -1.14% for the day. (In reality, that is a non-event, isn’t … Continue reading

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S&P: U.S. credit outlook is ‘negative’

These are words that investors in Treasury securities don’t like to read: Standard & Poor’s cut its ratings outlook on the U.S. to negative from stable while keeping its triple-A rating on the world’s largest economy. Relative to its AAA-rated … Continue reading

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Are U.S. TIPS markets wrong on inflation?

Another interesting video from FT.com on inflation: George Goncalves, head of US interest rates strategy at Nomura Securities, tells the FT’s Michael Mackenzie that he does not expect to see substantial inflation in the near future. Mr Goncalves says higher … Continue reading

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