Monthly Archives: December 2016

Defying The Naysayers: 5-Year TIPS Reopening Auctions With A Real Yield Of 0.12%

Summary A bear market for Treasury Inflation-Protected Securities? Not based on this auction, which generated strong demand. The coupon rate of 0.12% fell just below the coupon rate of 0.125%, meaning buyers had to pay a small premium for this … Continue reading

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Attention Bankers: It’s Time To Raise Your Sorry CD Savings Rates

Summary The Federal Reserve’s key short-term interest rate has increased 25 basis points. Shorter-term Treasury yields have increased as much as 87 basis points since May. But interest rates on bank CDs have barely budged. It’s time for savers to … Continue reading

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U.S. Inflation Rose 0.2% In November, But Holders Of Inflation Protected Investments Won’t Like This Report

Summary November prices were choppy, with costs of gasoline and shelter creating most of the increase. Non-seasonally adjusted inflation fell 0.16%, which will cause a drop in TIPS principal balances in January. With rising real yields, TIPS are looking to … Continue reading

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Here’s How A Dedicated Cord-Cutter Views AT&T’s New ‘DirecTV Now’ Service

┬áSummary The grandfathered promotional price of $35 for 100+ channels makes DirecTV Now very attractive to cord cutters. And then you get a free 4th generation AppleTV? Isn’t this a no brainer? With this aggressive pricing and expansive service, AT&T … Continue reading

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After A Month Of Bond-Market Turmoil, Here’s Where Inflation-Protected Investments Stand

Summary TIPS have held up relatively well because of a rise in the inflation-breakeven rate. We haven’t entered uncharted waters — today’s TIPS yields are in line with recent numbers. Bear market for TIPS? Not yet, and doesn’t seem likely. … Continue reading

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