Monthly Archives: February 2020

New 30-Year TIPS Gets Record-Low Real Yield Of 0.261%

Summary The real yield of 0.261% was the lowest for any 29- to 30-year TIPS auction in history, and much lower than the previous record of 0.479%. The coupon rate also set a record low of 0.250%, much lower than … Continue reading

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This New 30-Year TIPS Looks Like A ‘Death Star’ Investment

Summary The term is too long. The risk is too high. The potential reward is too low. An inflation breakeven rate of about 1.72% will make this TIPS appealing for big-money investors, so this auction should get solid demand. But … Continue reading

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U.S. Inflation Rose 0.1% In January, But Brisk Trend Continues

Summary Year-over-year U.S. inflation hit 2.5% in January, the highest number since October 2018. Gas prices declined, but core inflation held at 2.3%, indicating that inflationary trends are widespread in the economy. Non-seasonally adjusted inflation rose 0.39% in January, balancing … Continue reading

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