Monthly Archives: February 2015

Deflation strikes hard in January: What does it mean for TIPS and I Bonds?

The Consumer Price Index for All Urban Consumers (CPI-U) declined 0.7% in January on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, U.S. inflation decreased 0.1%. Gasoline prices were the major … Continue reading

Posted in Investing in TIPS | 3 Comments

30-year TIPS auctions with a yield to maturity of 0.842%

A new 30-year Treasury Inflation-Protected Security auctioned today with a coupon rate of 0.750% and a yield to maturity of 0.842%, the Treasury announced. This is the only 30-year TIPS to be created in 2015, but the Treasury will reopen … Continue reading

Posted in Investing in TIPS | 2 Comments

Checking in on today’s 30-year TIPS auction; any appeal?

The Treasury is auctioning a new 30-year Treasury Inflation-Protected Security on Feb. 19. This is CUSIP 912810RL4 and the coupon rate and yield to maturity will be determined by the auction. Non-competitive bids, like those made through TreasuryDirect, need to … Continue reading

Posted in Investing in TIPS | 3 Comments

Up next: New 30-year TIPS will auction February 19, 2015

The Treasury just announced that it will be auctioning a new 30-year Treasury Inflation-Protected Security on Feb. 19. This is CUSIP 912810RL4 and the coupon rate and yield to maturity will be determined by the auction. Here is how this … Continue reading

Posted in Investing in TIPS | 5 Comments

TIPS versus I Bonds during deflationary times

Reader maynardGkeynes (I call him MGK for short) posted an interesting question yesterday in the comment section, referring to the fact that an I Bond’s fixed interest rate can get wiped out by a negative inflation-adjusted rate: Then in way, … Continue reading

Posted in Investing in TIPS | 9 Comments

Buying I Bonds in 2015? No, wait!

  Jan. 8, 2016 update: Buying I Bonds In 2016? One Word Of Advice: Wait! Buying Series I Savings Bonds from the US Treasury is usually a no-brainer decision. Because individuals are limited to purchasing $10,000 a year in I … Continue reading

Posted in Investing in TIPS | 31 Comments

Here we go again: TIPS yields diving toward negative real returns

Yields on Treasury Inflation-Protected Securities are plummeting, making TIPS you own (and TIPS funds) more valuable, but making TIPS a far less attractive investment in the near term. US Treasurys of all sorts are booming because of a strong dollar, … Continue reading

Posted in Investing in TIPS | 5 Comments