Monthly Archives: March 2013

TreasuryDirect, TIPS and the dreaded 1099-OID

If you buy and hold Treasury Inflation-Protected Securities at TreasuryDirect, as I do, you’re violating a conventional wisdom rule of investing: Don’t hold TIPS in a taxable account. I disagree with that conventional wisdom, more or less, but mainly because … Continue reading

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10-year TIPS reissue auctions at -0.602%

The Treasury just announced that its reissue of CUSIP 912828UH1 – creating a 9-year, 10-month TIPS – auctioned with a yield to maturity of -0.602%. That means buyers of this Treasury Inflation-Protected Security are accepting 0.602% less than the rate … Continue reading

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Another 10-year TIPS auction, and another world crisis …

I am getting tired of this pattern. I will attempt to offer no proof, but I am getting a strong feeling that just before every significant TIPS auction, we get a world crisis that drives up the prices of Treasurys, … Continue reading

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Inflation shot up sharply in Feburary

‘Headline’ inflation – properly called Consumer Price Index for All Urban Consumers (CPI-U) – rose a very sharp 0.7% in February, the Bureau of Labor Statistics reported this morning. It was the biggest monthly rise since June 2009. This was … Continue reading

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Does the world really need more TIPS mutual funds?

Apparently so. State Street Global Advisors, the world’s second largest asset manager, says in a regulatory filing that it is launching two new ETFs based on Treasury Inflation-Protected Securities: SPDR Barclays 0-5 Year TIPS ETF, which will track the Barclays … Continue reading

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Next up: 10-year TIPS reissue to be auctioned March 21, 2013

The U.S. Treasury will announce Thursday – just a formality – that on March 21 it will auction a reopening of CUSIP 912828UH1, a 10-year Treasury Inflation-Protected Security that was first auctioned on Jan. 24. This creates a 9-year, 10-month … Continue reading

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