Author Archives: Tipswatch

Summary The real yield of -0.272% fell about 53 basis points below the yield of the originating auction on February 20. Investors had to pay a huge premium to collect the coupon rate of 0.25%, about $116.32 for about $100.26 … Continue reading →

Summary The Treasury will reopen CUSIP 912810SM1 in a Thursday auction, creating a 29-year, 6-month TIPS. The real yield looks likely to be around -0.26%, making this the first TIPS of this term to get a negative real yield. Investors … Continue reading →

Summary In a surprise, July inflation came in much higher than the consensus for both all-items and core inflation. Gas prices again were a big factor. The recent surge in inflation now has the Social Security COLA on track for … Continue reading →

Summary The overall TIPS market has had a huge run-up of almost 16% since the bond market turmoil of mid-March. The TIP ETF hit a record high of $126.51 last week, but its one-year performance has been in line with … Continue reading →

Summary There have been 104 auctions of this 9- to 10-year term since 1997 and today’s result was a record low yield, by a large margin. The inflation breakeven rate came in at 1.52%, a reasonable number but higher than … Continue reading →