Monthly Archives: October 2019

5-Year TIPS Auction Results In Surprisingly Low Yield

Summary The real yield to maturity of 0.054% was much lower than Treasury estimates at the market close Wednesday. The inflation break-even rate popped up to 1.50%, still low but higher than recent trends. Obviously, this TIPS issue was met … Continue reading

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This Week’s 5-Year TIPS Auction Looks Mildly Interesting

Summary At Friday’s close, the Treasury’s estimate of the real yield of a five-year TIPS stood at 0.25%, a bit higher than recent numbers. At that yield, the five-year inflation break-even rate would come in at 1.34%, an extremely low … Continue reading

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I Bond Investors: Act Now, Don’t Delay

Summary I Bonds issued before November 1 will carry a permanent fixed rate of 0.50%, creating a real return higher than that of a 5-, 10- or 20-year TIPS. The Treasury will reset this fixed rate on November 1, and … Continue reading

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Inflation Report Sets Social Security COLA At 1.6%; I Bond’s Variable Rate Rises To 2.02%

Summary The Social Security COLA of 1.6% for 2020 is well below this year’s increase of 2.8%, reflecting the dip in overall U.S. inflation this year. The variable interest rate for U.S. Series I Savings Bonds will rise to 2.02% … Continue reading

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