Monthly Archives: September 2020

10-Year TIPS Reopening Gets A Real Yield Of -0.966%, Lowest In History

Summary The real yield of -0.966% was slightly higher than where this TIPS was trading on the secondary market just minutes before the auction’s close. The inflation break-even rate settled in at 1.65%, which looks like a reasonable number. Inflation … Continue reading

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10-Year TIPS: Keep An Eye On The Inflation Breakeven Rate

Summary The 10-year real yield has dipped deeply negative, to nearly 1% below inflation. But that reflects the bond market’s very low nominal yields. This TIPS’ inflation breakeven rate of about 1.67% is still appealing. For the first $10,000 you … Continue reading

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August Inflation: What It Means For Social Security, TIPS And I Bonds

Summary Both all-items inflation (at 0.4%) and core inflation (at 0.4%) were higher than consensus estimates, continuing a recent trend. The August inflation report is signaling a 1.2% increase in the Social Security COLA for 2021, but one more month … Continue reading

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Seeking Yield And Safety? The Best Choice Is U.S. Savings Bonds

Summary EE Bonds will earn a remarkable 3.5% annually if held for 20 years, tax deferred and free of state income taxes. I Bonds will match U.S. inflation with a flexible maturity date and solid protection against deflation. Both of … Continue reading

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