Monthly Archives: June 2017

30-Year TIPS Reopening Auctions With A Disappointing Real Yield Of 0.88%

Summary Long-term real yields have been declining slightly while short-term yield are rising sharply. A yield of 0.88% is very close to this TIPS’ coupon rate of 0.875%. The adjusted price is close to par, when accrued inflation is added … Continue reading

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30-Year TIPS Will Reopen At Auction On June 22; Is It Worth A Look?

Summary The real yield looks likely to come in right around 0.95%, close to the originating auction result. The inflation breakeven rate is trending at 1.83%, pretty desirable. One warning: Do not buy this TIPS in a taxable account. It … Continue reading

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U.S. Inflation Turned To Deflation In May, Dropping 0.1%

Summary 12-month inflation has dipped to 1.9%, down from 2.7% in February. Core inflation is up 1.7% over the last year, also in a downward trend. Will the Federal Reserve back off on interest rate increases? Not likely today, but … Continue reading

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