Monthly Archives: June 2011

10-year TIPS yield: How low can it go?

Posted on June 29, 2011 by

There’s a new issue of a 10-year Treasury Inflation-Protected Security coming up July 21, so prospective buyers will want to keep up with the likely yield (which is the base interest rate of a TIPS; in addition, the owner’s principal … Continue reading →

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PIMCO manager: TIPS will hold value as ‘Goldilocks era’ ends

Posted on June 28, 2011 by

Mihir Worah, PIMCO portfolio manager, is discussing inflation and TIPS in a new economic outlook titled, ‘Higher Commodity Prices and the End of Economic Growth Without Inflation‘. Worah is manager of the $19.8 billion Pimco Real Return Fund (PRRIX),  which has … Continue reading →

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Next TIPS auction: 10-year Treasury Inflation-Protected Security, July 21, 2011

Posted on June 27, 2011 by

Update: Yes or no on this 10-year TIPS auction? Buyers of Treasury Inflation-Protected Securities used have have to wait months for new auctions, but now they seem to come every month. And in fact … they do … you will … Continue reading →

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ITIP ETF: How risky is it?

Posted on June 26, 2011 by

I have been following the new iShares International Inflation ETF (ITIP) for a few weeks now, looking for a possible opportunity to buy in. I had arbitrarily set a price of $49.50, and it hasn’t hit that price yet. This … Continue reading →

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30-year TIPS auctions at just 1.744% … disappointing?

Posted on June 23, 2011 by

Fed Chairman Ben Bernanke saved the U.S. Treasury a lot of money with his speech on Wednesday, saying the economy remains weak and the Fed has no plan for a major stimulus program. The stock market took an immediate dive, … Continue reading →

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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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Making the call: Yes or no on 30-year TIPS reissue of June 23?

Posted on June 21, 2011 by

Even if you want to accumulate a portfolio of Treasury Inflation-Protected Securities, there is one big issue when it comes to this 30-year TIPS, Cusip 912810QP6: Is 30 years too long? My philosophy is simple: Buy TIPS at TreasuryDirect.gov (or … Continue reading →

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30-year TIPS auction: Lowest rate in history?

Posted on June 16, 2011 by

6/23 update: This 30-year TIPS was auctioned at a rate of 1.744%, which was indeed a record low for a 30-year issue. — The U.S. Treasury on June 23, 2011, will offer a 29-year, 8-month Treasury Inflation-Protected Security in a … Continue reading →

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Yield on 30-year TIPS? Ouch.

Posted on June 16, 2011 by

Note: I have posted updates on the 30-year TIPS’ likely yield Next week, on June 23, the U.S. Treasury will auction a reissue of 30-year Treasury Inflation-Protected Securities. The formal announcement came today: It is a 29-year, 8-month issue, meaning … Continue reading →

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Provocative post: Is it time to short TIPS?

Posted on June 15, 2011 by

Personally, I am not going there. I don’t short, that’s not my style, and I definitely don’t feel I could accurately predict the future trend of TIPS mutual funds and ETFs, although I don’t own any at the moment and … Continue reading →

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