Category Archives: Inflation

Next auction: Reissue of a 5-year TIPS, Aug. 18, 2011

Posted on August 1, 2011 by Tipswatch

Update: Buy this issue? I say, no. The U.S. Treasury will auction a reissue of a 5-year Treasury Inflation-Protected Security on Aug. 18, 2011. It will be interesting to see how much buyer interest this auction can raise. My point … Continue reading →

Posted in I Bond, Inflation, Investing in TIPS, Savings Bond | Leave a comment

Fed chairman Bernanke: Inflation is not ‘imminent’

Posted on June 22, 2011 by Tipswatch

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 →

Posted in Inflation, Investing in TIPS | Leave a comment

U.S. inflation is heating up, right?

Posted on June 15, 2011 by Tipswatch

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 →

Posted in Inflation, Investing in TIPS | 4 Comments

Bernanke: Threat of inflation remains subdued

Posted on June 8, 2011 by Tipswatch

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 →

Posted in Inflation, Investing in TIPS | 1 Comment

Threat to TIPS greatly exaggerated?

Posted on June 5, 2011 by Tipswatch

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 →

Posted in Inflation, Investing in TIPS | 1 Comment