Category Archives: Investing in TIPS

Summary The year-over-year increase in CPI-W was 3.1% in June, higher than overall ‘headline’ inflation measured by CPI-U. Inflation measured by CPI-W in July, August and September will be averaged and compared to 2017 to determine the Social Security COLA … Continue reading →

Summary Even after rising in recent months, short-term interest rates remain below the level suggested by an inflation rate of 2.9% and relatively strong economic growth. A more reasonable Federal Funds Rate would be in the range of 3.25% to … Continue reading →

Summary Today’s result broke a string of 42 consecutive TIPS auctions of the 9- to 10-year term with a coupon rate below 0.75%. The actual real yield to maturity was 0.762%, slightly lower than expected, indicating good demand. But the … Continue reading →

Summary CUSIP 912828Y38 is a new 10-year TIPS that currently projects to have a real yield of 0.72% and a coupon rate of 0.625%. But a lot can change before the July 19 auction. Can the real yield rise above … Continue reading →

Summary The headline inflation increase was below the consensus estimate of 0.2%, but year-over-year inflation hit 2.9%, highest since February 2012. Core inflation increased 0.2%, matching expectations. Non-seasonally adjusted inflation increased 0.16% in June, triggering higher principal balances for TIPS … Continue reading →