Monthly Archives: December 2015

5-year TIPS reopening auctions with a real yield of 0.472%, highest in 5 years

A reopening auction today of a 5-year TIPS generated a real yield of 0.472%, the highest for any 4- to 5- year TIPS auction since April 2010. This is CUSIP 912828K33, with a coupon rate of 0.125% and a maturity … Continue reading

Posted in Investing in TIPS | 2 Comments

The Federal Reserve makes its move; what does this mean for TIPS?

For the first time since December 2008, the Federal Reserve is raising its Federal Funds Rate from zero to a range of 0.25% to 0.50%. If you like, you can read the Fed’s press release detailing its thoughts on the … Continue reading

Posted in Investing in TIPS | 2 Comments

US inflation was unchanged in November

The Consumer Price Index for All Urban Consumers (CPI-U) was unchanged in November on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 0.5%. Both food prices … Continue reading

Posted in Investing in TIPS | 4 Comments

TIPS are taking a hit – and yields are rising – as interest-rate hike looms

I noticed the TIP ETF – which holds a broad range of Treasury Inflation-Protected Securities – dropped to $109.52 today, down 0.73% for for the day. Here are the Treasury’s estimates of today’s real yields (after inflation) for full-term TIPS … Continue reading

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Up next: Treasury will reopen 5-year TIPS at auction Dec. 17, 2015

This is CUSIP 912828K33, a 4-year, 4-month TIPS, the shortest term you can buy at an auction. This TIPS was originally created April 23, 2015, with a coupon rate of 0.125% and a real yield to maturity of -0.335%. In … Continue reading

Posted in I Bond, Inflation | 4 Comments