Monthly Archives: July 2018

Here’s Why Donald Trump Is Wrong About Interest Rates

Summary Even after rising in recent months, short-term interest rates remain below the level suggested by an inflation rate of 2.9% and relatively strong economic growth. A more reasonable Federal Funds Rate would be in the range of 3.25% to … Continue reading

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New 10-Year TIPS Nabs 7-Year High Coupon Rate Of 0.75%

Summary Today’s result broke a string of 42 consecutive TIPS auctions of the 9- to 10-year term with a coupon rate below 0.75%. The actual real yield to maturity was 0.762%, slightly lower than expected, indicating good demand. But the … Continue reading

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10-Year TIPS: This Week’s Auction Looks Attractive, Sort Of

Summary CUSIP 912828Y38 is a new 10-year TIPS that currently projects to have a real yield of 0.72% and a coupon rate of 0.625%. But a lot can change before the July 19 auction. Can the real yield rise above … Continue reading

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U.S. Inflation Rose 0.1% In June, Slightly Lower Than Expected

Summary The headline inflation increase was below the consensus estimate of 0.2%, but year-over-year inflation hit 2.9%, highest since February 2012. Core inflation increased 0.2%, matching expectations. Non-seasonally adjusted inflation increased 0.16% in June, triggering higher principal balances for TIPS … Continue reading

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Nearing 65? Don’t Get Caught By Medicare’s ‘Money Traps’

Summary Medicare isn’t free and in fact may end up costing more than you expect. High-income earners may face substantially higher prices for Medicare coverage, as much as $8,800 a year in extra costs for a couple. Which Medigap plan … Continue reading

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