Monthly Archives: October 2013

No surprise: Federal Reserve decides against tapering

The Federal Reserve just released its FOMC statement for it October meeting, noting that the Fed will continue its bond-buying stimulus program despite signs that the economy is improving. This was universally expected, especially in view of  upcoming budget and … Continue reading

Posted in Investing in TIPS | Leave a comment

U.S. inflation increased 0.2% in September

The Bureau of Labor Statistics today released its shutdown-delayed September inflation report, showing that ‘headline’ inflation increased a seasonally-adjusted 0.2% in September, a number matching expectations. Over the last 12 months, this index, known as the Consumer Price Index for … Continue reading

Posted in Investing in TIPS | Leave a comment

30-year TIPS reissue auctions at 1.33%

The U.S. Treasury just posted the results of its reopening of CUSIP 912810RA8, which auctioned with a yield of 1.33% for the 29-year, 4-month remaining term. Because the coupon rate on this TIPS is 0.625% – set in the original … Continue reading

Posted in Investing in TIPS | Leave a comment

Warning: There’s a cash-flow problem with this 30-year TIPS

I’ve raised this issue before, and I hope this is actually the last time I need to raise it, since yields on TIPS have risen dramatically since February 2013. But here is the problem: If you bid on CUSIP 912810RA8 … Continue reading

Posted in Investing in TIPS | 1 Comment

Checking in on Thursday’s 30-year TIPS auction

Well, it’s actually a reopening of CUSIP 912810RA8, so buyers will be getting a 29-year, 4-month TIPS with a coupon rate of 0.625%. It will be going off at a huge discount, showing how volatile 30-year Treasurys can be. Right … Continue reading

Posted in Investing in TIPS | Leave a comment