Monthly Archives: June 2019

Real Yield In 5-Year TIPS Auction Drops To 0.152%

Summary Five-year real yields have dropped nearly 100 basis points in the last six months. That’s a huge move in anticipation of Federal Reserve rate cuts. Today’s real yield of 0.152% had to be a disappointment to investors, who also … Continue reading

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This Week’s 5-Year TIPS Reopening Will Reset The Market

Summary Expect volatility in the Treasury market this week because the Federal Reserve’s Open Market Committee will issue a statement Wednesday, one day before the auction. At this point, CUSIP 128286N5 is heading toward a real yield of about 0.35%, … Continue reading

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VTIP: As Yields Sink, Consider Adding Inflation Protection

Summary The Federal Reserve looks likely to begin cutting short-term rates in 2019, possibly as much as 75 basis points over the next year. Yields for money market funds and short-term Treasurys will track lower with those rate cuts. Inflation-protected … Continue reading

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U.S. Inflation Slowed In May With Increase Of 0.1%

Summary Both headline and core inflation numbers fell short of consensus estimates. Gasoline prices fell 0.5% in May, following a 5.7% increase in April. Gas prices could be a deflationary force in coming months. May’s mild inflation report leaves the … Continue reading

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FRNs: Their Time In The Spotlight Is About To End

Summary FRNs, 2-year Treasury investments, have been in the news recently because their yields topped all Treasury investments with terms up to 10 years. FRNs are attractive during a time of rising interest rates, especially for cash you know you … Continue reading

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