Category Archives: Investing in TIPS

U.S. Inflation Rose 0.3% In November, Higher Than Expected

Summary Headline inflation, which was higher than expected in November, has now topped 2.0% for the first time since November 2018. Core inflation matched expectations but remained moderately high at 2.3% year-over-year. Non-seasonally adjusted inflation declined 0.05%, meaning principal balances … Continue reading

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Real Yield On 10-Year TIPS Reopening Drops To 0.149%, Lowest In 3 Years

Summary The Treasury market isn’t attractive right now for small scale investors. A real yield of 0.149% was the lowest for any 9- to 10-year TIPS since an auction in September 2016 generated a real yield of 0.052%. The inflation … Continue reading

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Real Yields Are Rising, But Not Enough To Be Attractive

Summary 10-year real yields (meaning yields above inflation) briefly dipped into negative numbers in August, but have climbed 30 basis points since then. The Treasury is offering a 10-year TIPS reopening auction on Thursday, but the real yield still isn’t … Continue reading

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U.S. Inflation Rose 0.4% In October, Higher Than Expected

Summary The October inflation report was a mixed bag, with core inflation coming in slightly lower than expected. Increases in energy prices accounted for more than half the overall increase in inflation. Food prices also are rising. Have you noticed? … Continue reading

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Treasury Slashes I Bond’s Fixed Rate To 0.2%

Summary The I Bond’s fixed rate is falling from 0.5% to 0.2% for purchases through April 2020, a move that was expected after a year of declining interest rates. Bad news? Disappointing, yes, but I Bonds will remain an attractive … Continue reading

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5-Year TIPS Auction Results In Surprisingly Low Yield

Summary The real yield to maturity of 0.054% was much lower than Treasury estimates at the market close Wednesday. The inflation break-even rate popped up to 1.50%, still low but higher than recent trends. Obviously, this TIPS issue was met … Continue reading

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This Week’s 5-Year TIPS Auction Looks Mildly Interesting

Summary At Friday’s close, the Treasury’s estimate of the real yield of a five-year TIPS stood at 0.25%, a bit higher than recent numbers. At that yield, the five-year inflation break-even rate would come in at 1.34%, an extremely low … Continue reading

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