Category Archives: Inflation

Even though current inflation is running at 3.6% annually, it’s probably true that inflation is going to be held down near-term by a very weak U.S. economy. Here is the Reuters report on the ‘transient’ inflation issue: http://www.reuters.com/resources_v2/flash/video_embed.swf?videoId=216213419 Slower economic … Continue reading →

You might wonder based on conflicting news reports today (June 15),  when the U.S. released its monthly data on consumer prices. From FT.com: Core US consumer prices rose at their fastest rate for five years in May, making it almost … Continue reading →

Buyers of Treasury Inflation Protected Securities care about inflation; in fact, protection against inflation is the whole purpose of TIPS. If you aren’t concerned about inflation, you buy regular Treasury issues. TIPS are insurance against inflation. When you buy insurance … Continue reading →

Richard Leong of Reuters has posted an opinion piece on Treasury Inflation-Protected Securities titled, “Fed’s QE2 end threatens inflation bond rally.” Leong notes that “Barclays’ TIPS index is up 5.20 percent year-to-date, compared with a 2.62 percent rise on its … Continue reading →

According to the Treasury’s tentative calendar, the U.S. government will auction a  30-year TIPS at 1 p.m. on June 23. The announcement will come June 16 and the auction will settle on June 30. It will be a reissue, so … Continue reading →