Author Archives: Tipswatch

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.

10-Year TIPS Reopening Gets A Real Yield Of -0.867%

The Treasury’s offering of $12 billion in a reopened 10-year Treasury Inflation-Protected Security resulted in a real yield to maturity of -0.867%. This is CUSIP 912828ZZ6 and the auction creates a 9-year, 8 month TIPS, with an already existing coupon rate of 0.125%, the … Continue reading

Posted in Investing in TIPS | Leave a comment

10-Year Real Yields Are Rising, But Still Not Attractive

Summary The Treasury will reopen CUSIP 912828ZZ6 on Thursday, creating a 9-year, 8-month TIPS. The current market for this TIPS shows it with a real yield (after inflation) to maturity of -0.85% and a price of about $109.85 for $100 … Continue reading

Posted in Investing in TIPS | Leave a comment

Medicare Costs Will Rise Slightly In 2021, But Beware Of IRMAA

Summary The Part B premium will increase to $148.50 in 2021, up from $144.60 in 2020. Congress held down this cost in a spending bill passed earlier this year. The annual Part B deductible is increasing to $203, up from … Continue reading

Posted in Investing in TIPS | Leave a comment

Defying Forecasts, Inflation Disappeared In October

Summary Both all-items and core inflation came in at 0.0% for the month, less than the consensus forecasts. The BLS called the report “mixed,” reflecting large variances in price increases or decreases across the economy. For holders of TIPS and … Continue reading

Posted in Investing in TIPS | Leave a comment

I Bond’s Fixed Rate Holds At 0.0%; EE Bonds Still Double In 20 Years

Summary The U.S. Treasury did the right thing today, keeping I Bonds and EE Bonds very attractive investments, for different reasons. I Bonds purchased from November 2020 to April 2021 will earn a composite annualized interest rate of 1.68% for … Continue reading

Posted in Investing in TIPS | Leave a comment

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

Posted in Investing in TIPS | Leave a comment

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

Posted in Investing in TIPS | Leave a comment

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

Posted in Investing in TIPS | Leave a comment

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

Posted in Investing in TIPS | Leave a comment

Short-Term Treasury ETFs No Longer Make Investment Sense

Summary After a strong run over the last 12 months, these short-term Treasury ETFs are now yielding very close to zero. There’s little upside potential and little yield benefit over Treasury money market funds, which lock in your share price … Continue reading

Posted in Investing in TIPS | 2 Comments