Author Archives: Tipswatch

Summary The Treasury will reopen a 10-year TIPS at auction on Thursday, with the real yield to maturity expected to be well below zero. This TIPS — CUSIP 912828Z37 — had an amazing reopening auction in March, just as Treasury … Continue reading →

Summary The 20-year bond will re-launch Wednesday for the first time since 1986 at a regularly scheduled auction. The nominal yield should be about 1.05%. The Treasury will raise $20 billion in this auction, part of a massive borrowing effort … Continue reading →

Summary Gasoline prices fell a remarkable 20.6% in April, setting off a deflationary surge across the economy. Core inflation fell to 1.4% year over year, breaking a 27-month streak of rates at or above 2.0%. Inflation-protected investments, especially TIPS, will … Continue reading →

Summary U.S. Series I Savings Bonds purchased from May to October will pay a composite rate of 1.06%, annualized, for six months. EE Bonds will continue to double in value if held for 20 years, creating a tax-deferred, compounded rate … Continue reading →

Summary The new Treasury reality is negative real returns and stunningly low inflation expectations. The auction result of a real yield to maturity of -0.320% matched the Treasury’s overnight estimate. The inflation breakeven rate of 0.69% makes this TIPS – … Continue reading →