Monthly Archives: June 2021

When the Fed begins tapering, what will happen to TIPS?

‘Talking about talking about’ is a signal that real yields could be rising By David Enna, Jerome Powell, chairman of the U.S. Federal Reserve, made some significant statements last week with the potential to shake up both the stock … Continue reading

Posted in Inflation, Investing in TIPS | 9 Comments

5-year TIPS reopening gets a real yield of -1.416%, boosted by the Fed’s hints of tapering

By David Enna, The Treasury’s reopening auction of CUSIP 91282CCA7 — creating a 4-year, 10 month Treasury Inflation-Protected Security — went off today with a real yield to maturity of -1.416%, about 31 basis points higher than where this … Continue reading

Posted in Investing in TIPS | 5 Comments

Here’s why this week’s 5-year TIPS reopening auction makes investment sense

By David Enna, Can anyone make the case that a 5-year Treasury Inflation-Protected Security with a yield lagging inflation by 1.73% and an upfront premium cost of nearly 10% makes sense as an investment? Hey, I can. But that … Continue reading

Posted in Bank CDs, I Bond, Inflation, Investing in TIPS | 11 Comments

U.S. inflation surges 0.6% in May, again higher than expected

By David Enna, For the third month in a row, U.S. inflation surged to higher-than-expected levels in May, reaching the highest annual level in nearly 13 years, the Bureau of Labor Statistics reported today. The Consumer Price Index for … Continue reading

Posted in I Bond, Inflation, Investing in TIPS | 28 Comments

Want inflation protection? Be wary when the fund salesman calls.

The Lord Abbet Inflation Focused fund is a mixed-bag short-term corporate bond fund, not a typical TIPS fund By David Enna, I have an elderly friend (she’s 90+ years old so I think it’s OK to call her elderly) … Continue reading

Posted in Cash alternatives, Investing in TIPS, Retirement | 11 Comments