Category Archives: Bank CDs

Rise in real yields (once again) makes 5-year TIPS auction look attractive

By David Enna, Tipswatch.com Update, Thursday 1:35 p.m. ET: Weak demand results in real yield of 2.121% for 5-year TIPS reopening auction Update, Wednesday 5:17 pm ET: The Federal Reserve’s mixed messaging on inflation (expected to be a bit higher next … Continue reading

Posted in Bank CDs, Inflation, Investing in TIPS, TreasuryDirect | Tagged , , , , | 28 Comments

Investing for safety: The era of 5% yields is ending

By David Enna, Tipswatch.com We knew this day would come, after enjoying 5% nominal yields on very safe investments for more than a year. But that era ended Wednesday when the Federal Reserve cut its federal funds rate by 50 … Continue reading

Posted in Bank CDs, Cash alternatives, Inflation, Investing in TIPS, Retirement, Treasury Bills, TreasuryDirect | 38 Comments

Inflation breakeven rate makes 5-year TIPS auction look attractive

Do you believe inflation will average more than 2.12% over the next 5 years? By David Enna, Tipswatch.com The U.S. Treasury on Thursday will offer $21 billion in a reopened 5-year Treasury Inflation-Protected Security, CUSIP 91282CKL4. The result will be … Continue reading

Posted in Bank CDs, Federal Reserve, Inflation, Investing in TIPS, TreasuryDirect | Tagged , , , , , , | 31 Comments

A 5-year TIPS will mature April 15. How did it do as an investment?

Answer: Very well. By David Enna, Tipswatch.com I got a reader question this week about CUSIP 9128286N5, a 5-year Treasury Inflation-Protected Security that will mature on April 15, 2024. The question reminded me that this TIPS has completed its cycle, … Continue reading

Posted in Bank CDs, Inflation, Investing in TIPS | 30 Comments

This week’s 5-year TIPS auction offers a solid investment opportunity

By David Enna, Tipswatch.com The U.S. Treasury on Thursday will auction $22 billion in a new 5-year Treasury Inflation-Protected Security, and the results should be attractive for investors seeking protection from future inflation. It should generate the highest real yield … Continue reading

Posted in Bank CDs, Investing in TIPS, Savings Bond, TreasuryDirect | 31 Comments