Monthly Archives: March 2018

10-Year TIPS Reopens With A Yield Of 0.764%, Highest In Nearly 7 Years

Summary The after-inflation yield was 21 basis points higher than the originating auction in January. Because this TIPS has a coupon rate of 0.5%, buyers got it at a discount: about $97.93 for $100.43 of value, after accrued inflation is … Continue reading

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10-Year TIPS Will Reopen Thursday At A Nice Discount

Summary CUSIP 9128283R9, with a coupon rate of 0.5%, probably will auction with an after-inflation yield near 0.75%. That means buyers will get it at a discount to par value, about $97.50 per $100 before accrued inflation is added in. … Continue reading

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U.S. Inflation Rose 0.2% In February, Matching Expectations

Summary Gasoline prices fell 0.9%, which helped to moderate overall inflation. Food prices held steady. Non-seasonally adjusted inflation rose 0.45% in the month, meaning TIPS principal balances will rise 0.45% in April. The February number is the fifth in a … Continue reading

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Inflation Breakeven Rate: What It Really Tells You About TIPS

Summary Inflation breakeven rates have been rising fairly steadily since February 2016 and now are in the ‘neutral’ zone of value. When inflation breakevens rise, TIPS outperform nominal Treasurys. The lower the breakeven rate, the higher the ‘margin of safety’ … Continue reading

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