Monthly Archives: December 2017

Recapping 2017: The Year In Treasury Inflation-Protected Securities

Summary The year was marked by rising short-term real yields, as longer-term yields held stable or declined. If economic growth continues, longer-term real yields should begin rising. Watch for the 10-year real yield to climb toward 1.0%. The year’s TIPS … Continue reading

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5-Year TIPS Reopening Auctions With A Real Yield Of 0.370%

Summary The after-inflation yield of 0.370% was the highest in two years for any 4- to 5-year TIPS auction. Reaction to the auction looks positive, with the TIP ETF rising minutes after the close, indicating higher demand. The inflation breakeven … Continue reading

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The Year’s Most Attractive TIPS Auction Could Be Coming Dec. 21

Summary Short-term TIPS have attractive real yields, at least compared with longer maturities. Watch out for volatility in the Treasury market next week in the days leading up to the auction. The current inflation breakeven rate is about 1.81%, not … Continue reading

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Higher Gas Prices Drive U.S. Inflation Up 0.4% In November

Summary The sharp increase matched the consensus estimate, so it wasn’t a surprise for the markets. Core inflation remains muted, increasing just 0.1% for the month and 1.7% over the last 12 months. Today’s data won’t alter the Federal Reserve’s … Continue reading

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