Monthly Archives: May 2019

10-Year TIPS Reopening Generates A Real Yield Of 0.567%

Summary The real yield of 0.567% was in line with where this TIPS was trading Thursday morning. No surprise, and the auction appears to have been met with strong demand. Buyers had to pay a lofty premium, however, because the … Continue reading

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Take Caution: This Week’s 10-Year TIPS Reopening Will Be Pricey

Summary The real yield is likely to come in around 0.57%, well below the coupon rate of 0.875%. That means buyers could be paying a premium of nearly 3% to capture that coupon rate. Is that too high a price … Continue reading

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U.S. Inflation Rose 0.3% In April, Driven By Higher Gas Prices

Summary The 0.3% increase in the Consumer Price Index fell slightly below the consensus estimate, so no shock to the markets. Core inflation rose at an annual rate of 2.1%, showing that inflation exists outside of rising gasoline prices. Good … Continue reading

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In Surprise Move, Treasury Holds I Bond’s Fixed Rate At 0.5%

Summary Yes, I didn’t see this coming. Today’s decision is a gift to small-scale investors seeking inflation protection, and should be applauded. If you already bought your full 2019 allocation of I Bonds before April 30, you still get the … Continue reading

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