Monthly Archives: September 2012

Are TIPS expensive? A look back into recent history …

A New York Times article with the headline ‘An Inflation Hedge Carries Its Own Risks‘ spells out why TIPS mutual funds appear to be overpriced, and possibly risky, after substantial gains. Some of its major points: Investors who placed bets … Continue reading

Posted in Investing in TIPS | 12 Comments

10-year TIPS auctions at a record low -0.75%

The U.S. Treasury just announced that its reissue of a 10-year TIPS auctioned with a record-low yield to maturity of -0.75%. This is CUSIP 912828TE0, which will mature on July 15, 2022. The previous record low was for this same … Continue reading

Posted in Investing in TIPS | 14 Comments

Are TIPS a good investment in 2012?

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 | 15 Comments

‘Headline’ inflation rises a sharp 0.6% in August

As expected, U.S. inflation ticked up sharply in August, rising 0.6% because of higher energy prices. This was the first increase of any kind since March. Higher gas prices accounted for 80 percent of the increase. Food prices rose 0.2 … Continue reading

Posted in Investing in TIPS | 3 Comments

Next up: 10-year TIPS reissue auctions Sept. 20, 2012

The U.S. Treasury announced today that it will auction a reissue of CUSIP 912828TE0 on Sept. 20, resulting in a 9-year, 10-month Treasury Inflation-Protected Security investment for buyers. Read the auction announcement. This TIPS was originally auctioned July¬† 19, 2012, … Continue reading

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