Monthly Archives: September 2016

10-Year TIPS Reopening Auctions With A Real Yield Of 0.052%

Summary Buyers will pay about $101.11 for $100.40 of value, after accrued inflation is figured in. The Fed’s decision to hold off on an interest rate increase drove TIPS yields lower. The inflation-breakeven rate of 1.56% makes this an attractive … Continue reading

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Checking in on Thursday’s 10-year TIPS reopening auction

The Federal Reserve this afternoon backed away from a short-term interest rate hike this month, but left the door open for a future increase, most likely in December. That was exactly what the market was expecting, so there’s shouldn’t be … Continue reading

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10-Year TIPS Will Reopen At Auction Thursday; What’s The Likely Result?

Summary CUSIP 912828S50 has a coupon rate of 0.125% and may auction at a slight discount. As of Friday, the likely real yield was in the range of 0.15% to 0.19%. Here’s how to track the likely yield as Thursday’s … Continue reading

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U.S. Inflation Increased 0.2% In August; What Does This Mean For I Bonds And TIPS?

Summary Headline inflation has increased just 1.1% over the last 12 months. Core inflation, however, was up 0.3% in August and 2.3% over the last 12 months. The I Bond variable interest rate looks likely to get a big bump … Continue reading

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Investors should know: TIPS ETFs and mutual funds are riskier than you think

Summary TIPS mutual funds aren’t diversified. Total Bond Market funds make a better ‘core’ fixed-income investment. TIPS prices can be volatile, surprising investors when the prices head down. Alternative? Buy individual TIPS and hold them to maturity, along with I … Continue reading

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