Monthly Archives: April 2015

5-year TIPS auctions with a real yield of -0.335%

A new five-year Treasury Inflation-Protected Security – CUSIP 912828K33 – auctioned today with a real yield (after inflation) to maturity of -0.335%. The coupon rate was set at 0.125%, the lowest the Treasury allows on a TIPS. This is the … Continue reading

Posted in Investing in TIPS | 4 Comments

Checking in on today’s 5-year TIPS auction

A new 5-year Treasury Inflation-Protected Security – CUSIP 912828K33 – will be created today, with the coupon rate and real yield to maturity determined at auction. Non-competitive bids, like those placed through Treasury Direct, close at noon; competitive bids continue … Continue reading

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Variable interest rate on I Bonds will drop to -1.60% on May 1

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2% in March on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index declined 0.1%. This is an … Continue reading

Posted in I Bond, Inflation, Investing in TIPS | 1 Comment

Up next: New 5-year TIPS will auction April 23, 2015

The Treasury will announce later this morning that it will be offering a new 5-year Treasury Inflation-Protected Security at auction on Thursday, April 23. This will be CUSIP 912828K33. Update: Here is the announcement. The market for 4- to 5-year … Continue reading

Posted in Investing in TIPS | 3 Comments

Here we go again: TIPS yields are diving toward the negative

I hate to be negative, but the current trend in the Treasury market has me thinking evil thoughts. Why? Yields on Treasury Inflation-Protected Securities have dropped to levels negative to inflation for maturities all the way up to 9 years. … Continue reading

Posted in Investing in TIPS | 11 Comments