Monthly Archives: November 2016

10-Year TIPS Reopening Auctions With A Real Yield Of 0.369%

Summary The real yield was about 37 basis points higher than the early October trend. The inflation-breakeven rate of 1.90% was the highest since May 2015. TIPS are drawing attention as fears of future inflation rise. Today’s reopening auction of … Continue reading

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U.S. Inflation Rose 0.4% In October; Does That Lock In A Fed Rate Increase In December?

Summary While 0.4% looks high, core inflation remained in the moderate zone, just above 2.0% over the last 12 months. Energy costs, along with shelter costs, accounted for most of the October increase. There is nothing in today’s report that … Continue reading

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TIPS Yields Are On The Rise; Is That Enough To Make Thursday’s 10-Year TIPS Reopening Attractive?

Summary The after-inflation yields on TIPS have been rising sharply over the last month. But TIPS are out-performing the overall bond market, with yields rising at a slower pace. A rise in the 10-year inflation-breakeven rate indicates that investors are … Continue reading

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Breaking News: Treasury Drops The Fixed Rate On I Bonds To 0.00%; EE Bonds Retain 20-Year Doubling

Summary With the 10-year TIPS yielding just 0.11%, the Treasury couldn’t justify continuing the 0.10% fixed rate. But the I Bond will get a six-month variable rate of 2.76%, making it an attractive 1-year investment, no matter what happens in … Continue reading

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