Monthly Archives: February 2018

30-Year TIPS Auctions With A Real Yield Of 1.003%, Highest In 2 Years

Summary The real yield of 1.003% set the coupon rate at 1%, which is favorable for investors. The inflation breakeven rate came in at 2.12%, up 28 basis points from a June 2017 auction of a similar term. The market … Continue reading

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U.S. Inflation Jumped 0.5% In January, Higher Than Expected

Summary The 0.5% increase in ‘headline’ inflation was well above the 0.3% consensus estimate. Core inflation rose 0.3%, also above the consensus estimate of 0.2%. Non-seasonally adjusted inflation rose 0.54% in January; what does this mean for holders of TIPS … Continue reading

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A New 30-Year TIPS? Skip It

Summary 30-year real yields have been climbing, but not as quickly as yields for 5- and 10-year TIPS. The inflation breakeven rate is currently a reasonable 2.15%, making this issue competitive with a nominal 30-year Treasury. Risk/reward just isn’t good … Continue reading

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Looking To Hoard Cash? Consider 4-Week Treasurys

Summary Your cash in brokerage accounts is probably earning near zero. And your local bank or credit union won’t offer you much more. 4-week Treasurys are paying top-of-the-market yields with a very short term. They will react quickly to rising … Continue reading

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