Monthly Archives: March 2019

Inflation Warriors: It’s Time To Buy I Bonds

Summary The current fixed rate of 0.5% is likely to fall on May 1, possibly to as low as 0.2%. I Bond investors can lock in that 0.5% fixed rate for up to 30 years by investing before April 30. … Continue reading

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Real Yield On 10-Year TIPS Reopening Dips To 0.578%

Summary The after-inflation yield was the lowest for any 9- to 10-year TIPS auction since January 2018. The inflation breakeven rate came in at 1.94%, a fair number that indicates this TIPS is neither cheap nor expensive versus a nominal … Continue reading

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Skip This 10-Year TIPS Auction, Buy I Bonds Instead

Summary Thursday’s 10-year TIPS reopening looks likely to get a real yield to maturity of around 0.64%, well below January’s 0.919%. Investors will pay a premium, because the real yield will be well below the coupon rate of 0.875%. U.S. … Continue reading

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U.S. Inflation Rose 0.2% In February; I Bond Investors Get Bit Of Good News

Summary In a reversal of recent trends, food and energy prices increased while other prices were muted. Core inflation rose only 0.1% in the month, below the consensus estimate of 0.2%. Non-seasonally adjusted inflation rose 0.42% in February, a bit … Continue reading

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