Category Archives: Investing in TIPS

10-Year TIPS Reopening Auctions With A Real Yield Of 0.420%

Summary Real yields fell sharply this week in reaction to White House turmoil. The 10-year inflation breakeven rate came in at an attractive 1.79%, making this TIPS attractive versus a nominal Treasury. Market reaction looks positive, with TIPS yields falling … Continue reading

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10-Year TIPS Reopens May 18; Here’s What To Expect

Summary CUSIP 912828V49 is currently trading in the secondary market with a real yield of 0.47%. If you are considering a purchase, watch the secondary market, which will predict the likely yield. The 10-year inflation-breakeven rate is currently at an … Continue reading

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U.S. Inflation Increased 0.2% In April, Below Expectations

Summary Headline inflation was 2.2% over the last 12 months, down from 2.7% in February. Year-over-year core inflation dropped to 1.9%, the lowest number since October 2015. These numbers ease pressure on the Federal Reserve. Rate increases coming? Probably, but … Continue reading

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Time To Consider Short-Term Treasurys? Yields Have Hit An 8-Year High

Summary A 26-week Treasury just auctioned with an investment yield of 1.036%. 13-week yields are closing in on the 1% mark and may outperform your cash holdings. These short-term Treasurys can be purchased without commissions or fees and are ultra-safe … Continue reading

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Inflation Analysis: Why Spaghetti With Chicken Livers Is A Bargain In 2017

Summary A Charlotte restaurant offers a unique look at inflation over 54 years. Think gas prices were cheap in 1963? They still are. The stock market has been the best hedge against inflation since 1963. Is that a positive thing? … Continue reading

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Breaking News: U.S. Treasury Holds I Bond’s Fixed Rate At 0.0%

Summary I Bonds purchased from May to October 2017 will earn a composite rate of 1.96% for six months. If you haven’t bought I Bonds in 2017, I suggest waiting until October. Terms for EE Bonds didn’t change – their … Continue reading

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Going Negative: 5-Year TIPS Auctions With A Real Yield Of -0.049%

Summary Returns for this new TIPS will slightly lag inflation over the next five years. The negative yield is an omen that the markets see a troubled economy ahead. The inflation breakeven rate came in at 1.82%, a little higher … Continue reading

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