Monthly Archives: August 2011

Bill Gross on his bet against Treasuries: ‘Cry in your beer’

I will admit up front that I admire and respect Bill Gross, and that didn’t change with his recent, widely publicized interview with the Financial Times, although a lot of people are using this as an opportunity to dump on … Continue reading

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Bond bubble? Jeremy Siegel takes a shot at TIPS

Jeremy Siegel, author of ‘Stocks for the Long Run’ and co-author Jeremy Schwartz took some punches at Treasury Inflation-Protected Securities today in an opinion piece in the Wall Street Journal. They contend that Treasuries – including TIPS -are in a … Continue reading

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5-year TIPS auctions at negative 0.825%

The Treasury has posted the auction results for today’s reissue of a 5-year TIPS. This yield to maturity of -0.825% was right in line with what most experts were predicting. The 4-year, 8-month issue will mature on April 15, 2016. … Continue reading

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Stocks are plummeting: Interesting day for a TIPS auction

Update: This 5-year TIPS reissue auctioned at negative 0.825%. Stocks looking punk. The Dow Jones Industrial Average is down 430+ points this morning, on the day that the Treasury is auctioning a reissue of a 5-year TIPS, CUSIP 912828QD5. That … Continue reading

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

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

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Wall Street Journal: Good analysis of pluses, minuses of TIPS

Min Zeng wrote a good analysis last week on the rising asset values of Treasury Inflation-Protected Securities — at the same time inflation risk seems to be lessening. As Zeng points out, economic turmoil often leads to higher base yields … Continue reading

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Buy I Bonds? Heck yes, buy I Bonds!

Excellent timing on a question today from reader Slizzle: With TIPS yields getting more and more negative, the rates on I-bonds are looking more and more superior every day (since they do not drop below zero). Is anyone else speculating … Continue reading

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At these prices, should we be unloading TIPS?

Great question from reader Drew: Tipswatch — I hear you on “buy and forget it”. I’ve been doing that for years to build out a 30-year ladder which anchors the ‘safe’ allocation within my portfolio. But I have a bit … Continue reading

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Horrible day for stocks; Treasuries show surprising strength

The downgrade of U.S. debt might have helped to send world stock markets reeling, but the target of the downgrade – U.S. Treasuries – showed impressive power Monday as a ‘safe haven’ in uncertain times. Yields on Treasury Inflation-Protected Securities, … Continue reading

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U.S. debt downgrade: Tough talk from China

This was inevitable, wasn’t it? China is the world’s largest holder of U.S. debt, and now it is holding downgraded debt.  China is not happy, as you can see in this report on Marketwatch.com: “The U.S. government has to come … Continue reading

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