Author Archives: tipswatch

5-Year TIPS Auctions With A Real Yield Of 0.631%, Highest In Nearly 9 Years

The after-inflation yield was the highest for any 4- to 5-year TIPS auction since October 2009. The coupon rate was set at 0.625%, the first time any TIPS of this term has had a coupon rate higher than 0.125% since … Continue reading

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Thursday’s 5-Year TIPS Auction May Be The Most Attractive In Years

Summary Current trends are pointing at a real yield above 0.65%, the highest for any 4- to 5-year TIPS auction since October 2009. This TIPS will outperform a U.S. Series I Bond over five years and is very competitive with … Continue reading

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I Bond Investors: Hold Off On Purchases Despite A Declining Variable Rate

Summary The I Bond’s six-month variable rate will fall from 2.48% to 2.22% on May 1. The difference in yields is temporary and negligible. The fixed rate will also be reset May 1, and odds are that it will hold … Continue reading

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I Bond’s Variable Rate Will Fall To 2.22% On May 1

Summary Non-seasonally adjusted inflation from September 2017 to March 2018 rose 1.11%, which creates the new annualized rate. Seasonally adjusted inflation in March actually dropped 0.1%, which was below expectations. Core inflation came in at 0.2%. Both ‘headline’ and core … Continue reading

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10-Year TIPS Reopens With A Yield Of 0.764%, Highest In Nearly 7 Years

Summary The after-inflation yield was 21 basis points higher than the originating auction in January. Because this TIPS has a coupon rate of 0.5%, buyers got it at a discount: about $97.93 for $100.43 of value, after accrued inflation is … Continue reading

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10-Year TIPS Will Reopen Thursday At A Nice Discount

Summary CUSIP 9128283R9, with a coupon rate of 0.5%, probably will auction with an after-inflation yield near 0.75%. That means buyers will get it at a discount to par value, about $97.50 per $100 before accrued inflation is added in. … Continue reading

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U.S. Inflation Rose 0.2% In February, Matching Expectations

Summary Gasoline prices fell 0.9%, which helped to moderate overall inflation. Food prices held steady. Non-seasonally adjusted inflation rose 0.45% in the month, meaning TIPS principal balances will rise 0.45% in April. The February number is the fifth in a … Continue reading

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