Author Archives: Tipswatch

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 →

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 →

Summary Inflation breakeven rates have been rising fairly steadily since February 2016 and now are in the ‘neutral’ zone of value. When inflation breakevens rise, TIPS outperform nominal Treasurys. The lower the breakeven rate, the higher the ‘margin of safety’ … Continue reading →

Summary The real yield of 1.003% set the coupon rate at 1%, which is favorable for investors. The inflation breakeven rate came in at 2.12%, up 28 basis points from a June 2017 auction of a similar term. The market … Continue reading →

Summary The 0.5% increase in ‘headline’ inflation was well above the 0.3% consensus estimate. Core inflation rose 0.3%, also above the consensus estimate of 0.2%. Non-seasonally adjusted inflation rose 0.54% in January; what does this mean for holders of TIPS … Continue reading →