Monthly Archives: March 2014

Repost: TreasuryDirect, TIPS and the dreaded 1099-OID

We are nearing the final days of tax season, so I am reposting a blog I wrote back on March 28, 2013, on investing in TIPS in a taxable account. In my case, my portfolio allocation works better that way, … Continue reading

Posted in Investing in TIPS | 6 Comments

How can I tell if I am going to pay a premium or discount at a TIPS auction?

In response to reader questions, I have added this to my ‘Q&A about TIPS‘ page on the site. It’s linked in the top navigation. There are two key questions: 1) is this a new TIPS or a reopening? and 2) … Continue reading

Posted in Investing in TIPS | 2 Comments

10-year TIPS reopening auctions with yield of 0.659%

In an auction that capped two days of turmoil in the market for Treasury Inflation-Protected Securities, the Treasury just announced that CUSIP 912828B25 was reopened with a yield to maturity of 0.659% plus inflation, just under the 0.661% this TIPS … Continue reading

Posted in Investing in TIPS | 8 Comments

Pre-auction update: TIPS yields continue to rise

It looks like today’s reopening of CUSIP 912828B25, creating a 9-year, 10-month TIPS, could auction with a yield to maturity above 0.60%, much higher than looked likely just a few days ago. Bloomberg’s Current Rates site is flashing a yield … Continue reading

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TIPS take a nearly 1% hit on Federal Reserve worries

Wednesday was certainly an interesting auction’s eve. On the day before the Treasury is reopening CUSIP 912828B25 – a 10-year Treasury Inflation-Protected Security – at auction, the Federal Reserve today issued a statement that certainly said nothing dire … but … Continue reading

Posted in Investing in TIPS | 4 Comments

U.S. inflation rose a mild 0.1% in February

U.S. inflation increased 0.1% on a seasonally adjusted basis in February, the Bureau of Labor Statistics reported today, continuing a trend of very mild inflation for more than a year. Over the last 12 months, the Consumer Price Index for … Continue reading

Posted in I Bond, Inflation, Investing in TIPS | 3 Comments

Up next: 10-year TIPS reopening will auction March 20, 2014

Later today, the U.S. Treasury will formally announce it will reopen CUSIP 912828B25, a 10-year Treasury Inflation-Protected Security, in an auction on Thursday, March 20. This TIPS originally auctioned Jan. 23, 2014, with  a coupon rate of 0.625% and a … Continue reading

Posted in Investing in TIPS | 7 Comments

A troubling report on family net worth from the Federal Reserve

The Wall Street Journal headline today seems like great news: ‘U.S. Household Net Worth Hits Record High.‘ It is good news for those sharing in the prosperity. But the article’s sub-headline sheds light on the complexity: ‘Surging Stock Market and … Continue reading

Posted in Investing in TIPS | 11 Comments

What would ‘normal’ TIPS yields look like?

You might ask: ‘How are you going to define ‘normal’? Good point. In the financial world, the going price for anything might be called the ‘normal’ price, set by free markets. But in the case of Treasury Inflation-Protected Securities, normal … Continue reading

Posted in Investing in TIPS | 3 Comments