Monthly Archives: January 2015

10-year TIPS auctions with a yield of 0.315%

The Treasury just announced that its auction of CUSIP 912828H45 – a new 10-year Treasury Inflation-Protected Security – resulted in a yield to maturity of 0.315% and a coupon rate of 0.250%. Buyers at the auction got a much better … Continue reading

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Checking in on today’s 10-year TIPS auction

The Treasury today will create a new 10-year Treasury Inflation-Protected Security – CUSIP 912828H45, with the coupon rate to be determined at  auction. Non-competitive bids, like those placed at Treasury Direct, must be made by noon; competitive bids need to … Continue reading

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Deflation and TIPS: How the numbers bring the ‘pain’

Treasury Inflation-Protected Securities are often cited as being reasonably safe against deflation, because when held to maturity they will return the original ‘par’ value, even if deflation strikes with vengeance. In other words, the value can never go below ‘par’ … Continue reading

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Deflation continues: US prices fell another 0.4% in December

The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.4%  in December on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 0.8%. From August until … Continue reading

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Up next: New 10-year TIPS will auction Jan. 22, 2015

The Treasury just announced next week’s TIPS auction: CUSIP 912828H45, a new issue with the coupon rate to be determined at  auction. This auction will come amid a lot of turmoil in financial markets, with Treasury yields plummeting while the … Continue reading

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TIPS investors: Why the inflation breakeven rate is your friend

As the stock market tumbles a bit from all-time highs, the Treasury market is soaring, with yields dropping to 1.96% yesterday on the 10-year nominal Treasury. It is hard to believe that the US is seeing: 1) better-than-average economic growth, … Continue reading

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Recapping 2014: The year in TIPS

After suffering through a miserable 2013, holders of mutual funds based on Treasury Inflation-Protected Securities enjoyed a rather pleasant 2014. The TIP ETF – a big fund that is diversified through maturity dates – started the year on Jan. 2  … Continue reading

Posted in Investing in TIPS | 7 Comments