Author Archives: Tipswatch

Summary Bank CD rates are finally climbing toward reasonable levels. How long has it been since we have seen 3% for a 3-year term? But across most short-term maturities, U.S. Treasurys offer better yields, ultimate safety and freedom from state … Continue reading →

Summary The real yield of 0.910% was the second highest of this term through 43 auctions since May 2011. The inflation breakeven rate came in at 2.15%, on the higher end of recent auctions, but still acceptably in the “neutral … Continue reading →

Summary The current trend indicates a real yield around 0.88%, which is attractive, at least based on auctions over the last seven years. The problem? A 5-year TIPS is currently yielding 1 basis point higher than a 10-year. Why buy … Continue reading →

Summary August headline inflation came in below the consensus for the month and year. Core inflation was also below the consensus. The current trend in CPI-W would place the 2019 Social Security cost-of-living increase in a range of 2.7% to … Continue reading →

Summary Investors got this reopened TIPS at a discount, because the real yield was higher than the coupon rate of 0.625%. The inflation breakeven rate came in at 1.99%, slipping 13 basis points since the originating auction in April. This … Continue reading →