Monthly Archives: March 2017

10-Year TIPS Reopening Auctions With A Real Yield Of 0.466%

Summary 10-year TIPS yields have been holding under 0.50% even as the Federal Reserve raises short-term rates. The inflation breakeven rate dipped to 1.95%, under the 2.00% mark where it had been riding for most of 2017. Inflation expectations are … Continue reading

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10-year TIPS will reopen at auction March 23; will yield be high enough to be attractive?

Summary A week out, CUSIP 912828V49 is trading with a real yield to maturity of 0.48%. Its inflation-breakeven rate is 2.04%, right in the mid-range of inflation expectations since 2009. Is it a buy? Maybe not at the current yield, … Continue reading

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U.S. Inflation Rose 0.1% In February; Now Up 2.7% Over 12 Months

Summary The 12-month increase of 2.7% was the largest since March 2012. Gasoline prices fell in February, moderating overall inflation. But they’re still up 30.7% over the last year. Non-seasonally adjusted inflation rose 0.31%, which will boost the principal balances … Continue reading

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Real interest rates are on the rise — TIPS could get interesting in 2017

Summary The real yield on a 10-year TIPS has risen 29 basis points in recent weeks. At the same time, the inflation breakeven rate has declined – slightly. The driving force? A rise in nominal rates, which will nearly always … Continue reading

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