Monthly Archives: August 2013

How high will TIPS and Treasury yields rise?

Since May 1 of this year, we have seen a pretty-much unprecedented rise in Treasury yields, almost blindingly quick as the Federal Reserve began to slowly back away (verbally, not in action) from its bond-buying stimulus program. On May 1, … Continue reading

Posted in Investing in TIPS | 5 Comments

4-year, 8-month TIPS auctions at -0.127%, a 3-year high

The U.S. Treasury just announced that its reissue of a 4-year, 8-month TIPS auctioned with a yield to maturity of   -0.127%, the highest yield for any 4- or 5-year TIPS issued in more than three years. Read the announcement. … Continue reading

Posted in Investing in TIPS | 7 Comments

TIPS watchers ask: What exactly did the Federal Reserve minutes say?

It was quite an auction-eve day in the market yesterday, with Federal Reserve minutes released at 2 p.m., setting both the stock and bond markets into a tizzy. We are setting up for an interesting Treasury auction today for a … Continue reading

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Tips on TIPS: How to estimate (guess) a yield for an upcoming auction

Interest rates fluctuate, day by day, hour by hour. That fact makes predicting the future auction yield of a Treasury Inflation-Protected Security pretty difficult, even impossible. But you can guess, and sometimes you can get fairly close, if you watch … Continue reading

Posted in Investing in TIPS | 9 Comments

U.S. inflation ran a moderate 0.2% in July

‘Headline’ inflation, technically called the Consumer Price Index for All Urban Consumers (CPI-U), increased 0.2% in July on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, CPI-U has increased 2.0%. For … Continue reading

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Up next: 5-year TIPS reissue will auction Thursday, Aug. 22, 2013

This auction is two weeks away, so I thought I’d take a preliminary peek at it. This will be a reissue of CUSIP 912828UX6, which first auctioned on April 18 with a yield to maturity of -1.311%. This 4-year, 8-month … Continue reading

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Nice upswing today in TIPS, Treasury yields

I guess the Ben Bernanke euphoria wore off overnight, but just for bonds. The stock market took off, with both the Dow average and S&P 500 index setting record highs. (NOT adjusted for inflation, as my frequent reader Ed will … Continue reading

Posted in Investing in TIPS | 5 Comments