Monthly Archives: January 2018

New 10-Year TIPS Auctions With A Real Yield Of 0.548%, Highest In 2 Years

Summary The real yield of 0.548% was the highest for any 9- to 10-year TIPS auction since January 2016. The coupon rate was set at 0.500%, the first time in history that any 10-year TIPS received this coupon rate. The … Continue reading

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New 10-Year TIPS Auction Jan. 18 Is Definitely Worth A Look

Summary The current real yield estimate of 0.54% would be the highest at auction since January 2016. The inflation breakeven rate has inched up to 2.01%, but that’s still attractive enough versus the nominal Treasury’s yield of 2.55%. Looking ahead: … Continue reading

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U.S. Inflation Rose 0.1% In December, Slightly Below Expectations

Summary The headline miss probably isn’t significant, but core inflation rose 0.3%, above the consensus estimate of 0.2%. Non-seasonally adjusted inflation dipped 0.06% in December and I Bond investors may be facing a weak variable rate reset on May 1. … Continue reading

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I Bond Investors: Here’s Your Buying Guide For 2018

Summary Wait at least until the March inflation number is announced on April 11. You then enter a three-week ‘limbo period’ when you can decide to buy before or after the May 1 rate reset. Don’t bother buying I Bonds … Continue reading

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