Category Archives: Investing in TIPS

New 30-Year TIPS Auctions With A Real Yield Of 0.923%

Summary The coupon rate was set at 0.875%, so buyers got it at a discounted price of about $98.76 for $100 of value. The inflation breakeven rate came in at 2.13%, higher than recent auctions. Market reaction to the auction … Continue reading

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U.S. Inflation Rose 0.6% In January, Largest Increase In Four Years

Summary Year-over-year inflation rose 2.5%, the highest number in nearly five years. Gasoline prices rose sharply in January, but core inflation still rose 0.3% without gasoline. The Federal Reserve will take note. The report is welcome news for holders of … Continue reading

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This New 30-Year TIPS Might Not Be A Great Investment

Summary A real yield around 0.91% won’t be enough justify an investment in a highly-volatile issue, even for most buy-and-traders. If you’re older than 60, the 30-year term isn’t appealing as a buy-and-hold investment. This TIPS is likely to be … Continue reading

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Here’s Why An I Bond With A Fixed Rate Of 0.0% May Outperform Your Short-Term TIPS Fund

Summary Short-term TIPS have real yields negative to inflation. An I Bond with a fixed rate of 0.0% will match inflation and provide a better return than a short-term TIPS. For a short-term TIPS fund to outperform, real yields will … Continue reading

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FRNs: Is It Time To Take A Look At Treasury Floating Rate Notes?

Summary FRNs are getting more intriguing as interest rates rise from near-zero levels. They offer protection against rising interest rates, but not rising inflation. That makes FRNs a good complement to TIPS and I Bonds. But are they a good … Continue reading

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Thank You, Janet Yellen: New 10-Year TIPS Auctions With A Real Yield Of 0.436%

Summary TIPS yields rose Wednesday after Fed Chair Yellen signaled more interest rate increases are coming. Investors at today’s auction got a boost in yield, the highest in a year. The 10-year inflation breakeven rate hit 2.044%, signaling that TIPS … Continue reading

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U.S. Inflation Rose 0.3% In December; Up 2.1% Over Last 12 Months

Summary News is not good for I Bond investors: Inflation is flat over first three months of rate-setting period. Year-over-year ‘headline’ inflation broke through the 2.0% barrier for the first time since June 2014. Core inflation rose 2.2% in 2016, … Continue reading

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