Monthly Archives: October 2020

New 5-Year TIPS Gets Real Yield Of -1.32%, Lower Than Expected

Summary The result, which dipped below recent market indicators, was the second-lowest real yield for any TIPS auction of this term. Investors had to pay a sizable premium for this TIPS, about 7.5% above par value, to collect a coupon … Continue reading

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This New 5-Year TIPS Might Look Ugly, But It Has Appeal

Summary The U.S. Treasury will offer a new 5-year TIPS at auction Thursday. The real yield looks likely to come in around -1.21%, which is pretty awful but isn’t a record low. The only way to judge this TIPS is … Continue reading

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Unique Opportunity: I Bonds As An 11-Month Investment

Summary We now know the I Bond’s next inflation-adjusted variable rate, which is rising to 1.68% from the current 1.06%. The permanent fixed rate, currently 0.0%, will be reset on November 1, but is highly likely to remain at 0.0%. … Continue reading

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Inflation Report Sets Social Security COLA At 1.3%; I Bond’s Variable Rate Rises To 1.68%

Summary Social Security payments will increase 1.3% in January, adding about $20 a month for the average recipient. However, a hike in Medicare premiums could wipe out part of that increase. The inflation-adjusted variable rate for U.S. Series I Savings … Continue reading

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