Monthly Archives: May 2015

I Bond confusion: Understanding how the 0.0% rate rolls out

Back on May 1, I wrote an article about how the new  I Bond inflation adjusted variable rate had fallen into the deep negative, -1.60% (annualized). And this meant any Series I Savings Bond with a fixed rate of  1.6% … Continue reading

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U.S. inflation remains muted, increasing 0.1% in April

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1% in April on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, inflation declined 0.2%. Falling energy prices were a key … Continue reading

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10-year TIPS reopening auctions with a real yield of 0.358%

The US Treasury just announced that its reopening of a 10-year TIPS – CUSIP 912828H45 – auctioned with a real yield (above inflation) of 0.358%. This is a 9-year, 8-moth Treasury Inflation-Protected Security with a coupon rate of 0.250%. Because … Continue reading

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Checking in on today’s 10-year TIPS reopening

Noncompetitive bids close at noon for CUSIP 912828H45, a 9-year, 8-month Treasury Inflation-Protected Security with a coupon rate of 0.210%. Competitive bids close at 1 p.m. when the auction ends. Here’s what we can say at 10:06 a.m.: Bloomberg’s Current … Continue reading

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Up next: 10-year TIPS reopens at auction May 21, 2015

It’s been an interesting couple of weeks for Treasury Inflation-Protected Securities, and all government bonds. Yields are rising – the 10-year German bund, for example, is currently yielding 0.73%, up from 0.07% just three weeks ago. In that same time, … Continue reading

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Can a TIPS investment go bad? Yes, it can. An ugly example.

My philosophy for investing in Treasury Inflation-Protected Securities is to buy them at auction when the yield is attractive, and then hold them to maturity. At the very least – in almost every case –  you will get the original … Continue reading

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May 1 update: Series I Savings Bonds to pay 0.0% interest; EE Bonds bump up to 0.3%

The US Treasury just announced that the fixed rate on Series I Savings Bonds will remain at 0.0% from May to October, meaning I Bonds purchased in this period will earn a composite rate of 0.0% for six months. In … Continue reading

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