Monthly Archives: April 2012

An incredible, contrarian run in 2012 for TIPS

If you read investment commentary (it’s hard to avoid, isn’t it?) you surely have seen the rash of stories in 2012 predicting a long-term bear market for traditional Treasuries and their mutant offshoot, Treasury Inflation-Protected Securities. Examples: April 27, Kiplinger: … Continue reading

Posted in Investing in TIPS | 6 Comments

5-year TIPS auctions at all-time low -1.080%

The Treasury just completed its auction of a new 5-year Treasury Inflation-Protected security, which resulted in a yield to maturity of -1.080%. CUSIP 912828SQ4 has a coupon rate of 0.125%, meaning that today’s buyers had to pay up for this … Continue reading

Posted in Investing in TIPS | 7 Comments

Forget the 5-year TIPS, buy I Bonds … today

The Treasury is offering a 5-year TIPS Thursday that will have zero appeal for small investors. CUSIP 912828SQ4 will auction with a coupon rate of 0.125%, but buyers will have to pay up – way up – to get the … Continue reading

Posted in I Bond, Investing in TIPS, Savings Bond | 12 Comments

Treasury formally announces 5-year TIPS auction on April 19

The U.S. Treasury today posted its formal announcement of the five-year TIPS to be auctioned Thursday, April 19. It is CUSIP 912828SQ4, a new issue. It will most likely auction with a coupon yield of 0.125%. We already know this … Continue reading

Posted in I Bond, Investing in TIPS, Savings Bond | 1 Comment

Food, gas costs push up U.S. inflation

The U.S. Labor Department reported today that the Consumer Price Index rose 0.3% in March, mostly because of higher food and gas prices. In 12 months that ended in February, prices rose 2.7 percent. That’s below last year’s peak year-over-year … Continue reading

Posted in Investing in TIPS | 4 Comments

Let’s be negative: Making the case for a 5-year TIPS

The Treasury on April 19 will auction a new issue 5-year Treasury Inflation-Protected Security, and it is likely to have a deeply negative base interest rate. I am going to try my best to explain why anyone would buy this … Continue reading

Posted in Investing in TIPS | 2 Comments

Stocks versus TIPS: What’s next for the ‘prudent investor’?

Are Treasury Inflation-Protected Securities now an unsafe or unwise investment? Is the Treasury market at the start of a long bear market? Will stocks greatly outperform bonds over the next 10 years? Burton Malkiel, author of ‘A Random Walk Down … Continue reading

Posted in Investing in TIPS | 2 Comments