Monthly Archives: August 2016

5-year TIPS reopens at auction with a real yield of -0.209%, lowest in 16 months

Summary The after-inflation yield of -.209% is the lowest since an auction in April 2015. Buyers had to pay a premium, about $103.27 for $101.69 of value, when accrued inflation is added in. The inflation breakeven rate was 1.32%, making … Continue reading

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U.S. inflation was unchanged in July; what does it mean for TIPS and I Bonds?

Summary July inflation came in under the consensus estimate of 0.2%. Gasoline prices fell sharply, breaking a four-month string of increases. Non-seasonally adjusted inflation fell 0.16% for the month, which will lower TIPS principal balances in September. Read my full … Continue reading

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Coming Thursday: Treasury Reopens A 5-Year TIPS… Is It Worth A Look?

Summary The after-inflation yield looks likely to come in around -0.20%. Buyers will pay a premium for the coupon rate of 0.125%, probably about $100.71 for $100 of value. The inflation breakeven rate remains low enough to make this TIPS … Continue reading

Posted in Investing in TIPS | 4 Comments