Category Archives: Investing in TIPS

Falling Gas Prices Leave U.S. Inflation Unchanged In November

Summary Headline inflation came in at 0.0% in November and was up 2.2% year-over-year. Core inflation was up 0.2% for the month and 2.2% for the year. Non-seasonally adjusted inflation actually fell 0.33% in November, which means investors in TIPS … Continue reading

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10-Year TIPS Auctions At 1.109%, Highest In Nearly 8 Years

Summary The last time a 9- to 10-year TIPS auctioned with a real yield above 1.00% was on January 20, 2011, at 1.17%. Buyers got this TIPS at a substantial discount because the real yield was well above the coupon … Continue reading

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Is It Time To Buy TIPS ETFs, Mutual Funds?

Summary TIPS funds have taken a hit in 2018, but that damage has been partially ¬†offset by distributions caused by rising inflation. The total return of shorter-term TIPS funds remains positive for the year, thanks to a shorter duration and … Continue reading

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Wednesday’s 10-Year TIPS Auction Still Looks Attractive

Summary The real (after-inflation) yield looks likely to top 1.00% for the first time for any 9- to 10-year TIPS auction since January 2011. The inflation breakeven rate is currently a reasonable 2.02% and should attract strong demand at this … Continue reading

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U.S. Inflation Rose 0.3% In October, Highest Since January

Summary Higher gasoline prices accounted for more than one-third of the increase in headline inflation, the BLS reported. But crude oil prices began declining in October, which should be reflected in near-term gasoline prices. Both headline and core inflation matched … Continue reading

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Great News For I Bond Investors: Treasury Raises Fixed Rate To 0.50%

Summary I Bonds purchased from November through April will carry a composite rate of 2.83%, based on a fixed rate of 0.50% and inflation rate of 2.32%. The fixed rate of 0.50% is the highest in 10 years, and means … Continue reading

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30-Year TIPS Reopening Auctions With A Real Yield Of 1.235%

Summary The after-inflation yield of 1.235% was higher than where this TIPS was trading in the secondary market. That indicates weak demand. The yield was the highest for any 29- to 30-year TIPS auction since February 2014. The inflation breakeven … Continue reading

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