Monthly Archives: December 2013

Holders of mutual funds investing in Treasury Inflation-Protected Securities won’t be sad to see 2013 fade away: It’s been the worst year for TIPS values since the Treasury instrument was launched in 1997. The TIP ETF – which holds a … Continue reading →

The Treasury just announced the results of today’s reopening of CUSIP 912828UX6, a 4-year, 4-month TIPS that auctioned with a yield to maturity of -0.375%, plus inflation. Because this TIPS carries a coupon rate of 0.125% – the lowest the … Continue reading →

The Federal Reserve, in an announcement that slightly surprised the financial markets, announced today that it will reduce its $85 billion a month in bond purchases by $10 billion starting in January. The move was anticipated, but most market-watchers expected … Continue reading →

Inflation – as measured by the Consumer Price Index for All Urban Consumers (CPI-U) – was unchanged in November on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, this index – … Continue reading →

The Treasury announced Thursday it is reopening CUSIP 912828UX6, creating a 4-year 4-month TIPS with a coupon rate of 0.125%. Because of upcoming holidays, the auction on Thursday, Dec. 19, will end earlier than usual: 11 a.m. for noncompetitive bids … Continue reading →

The new, bipartisan budget deal in Congress – crafted to avert another government shutdown – could have a ‘surprise’ effect: It could lead to higher interest rates in 2014. The big reason is that it opens the door for the … Continue reading →

One side benefit of establishing even a small stake in the Fidelity Inflation-Protected Bond Fund (FINPX) is getting Fidelity’s annual and semiannual shareholder reports. The managers of this fund – William Irving and Franco Castagliuolo – seem to be straight … Continue reading →

Yes, it has been a bad year for Treasury Inflation-Protected Securities, but as I will explain, it all depends on how you define ‘bad.’ As a buy and hold-to-maturity investor in TIPS, with a ladder crossing many years of maturities, … Continue reading →