Category Archives: Investing in TIPS

10-Year TIPS Will Reopen At Auction Thursday; What’s The Likely Result?

Summary CUSIP 912828S50 has a coupon rate of 0.125% and may auction at a slight discount. As of Friday, the likely real yield was in the range of 0.15% to 0.19%. Here’s how to track the likely yield as Thursday’s … Continue reading

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U.S. Inflation Increased 0.2% In August; What Does This Mean For I Bonds And TIPS?

Summary Headline inflation has increased just 1.1% over the last 12 months. Core inflation, however, was up 0.3% in August and 2.3% over the last 12 months. The I Bond variable interest rate looks likely to get a big bump … Continue reading

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Investors should know: TIPS ETFs and mutual funds are riskier than you think

By David Enna, Tipswatch.com A lot of investors believe putting money into an ETF or mutual fund holding Treasury Inflation-Protected Securities is a very safe ‘core’ investment. After all, these are investments in U.S. Treasurys, so there is no credit … Continue reading

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5-year TIPS reopens at auction with a real yield of -0.209%, lowest in 16 months

Summary The after-inflation yield of -.209% is the lowest since an auction in April 2015. Buyers had to pay a premium, about $103.27 for $101.69 of value, when accrued inflation is added in. The inflation breakeven rate was 1.32%, making … Continue reading

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U.S. inflation was unchanged in July; what does it mean for TIPS and I Bonds?

Summary July inflation came in under the consensus estimate of 0.2%. Gasoline prices fell sharply, breaking a four-month string of increases. Non-seasonally adjusted inflation fell 0.16% for the month, which will lower TIPS principal balances in September. Read my full … Continue reading

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