Category Archives: Investing in TIPS

Coming Thursday: Treasury Reopens A 5-Year TIPS… Is It Worth A Look?

Summary The after-inflation yield looks likely to come in around -0.20%. Buyers will pay a premium for the coupon rate of 0.125%, probably about $100.71 for $100 of value. The inflation breakeven rate remains low enough to make this TIPS … Continue reading

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New 10-Year TIPS auctions with a real yield Of 0.045%, lowest in more than 3 years

Summary Coupon rate was set at 0.125%, the lowest the Treasury will go. Buyers had to pay a premium, an adjusted price of about $100.98 for $100 of par value. The inflation breakeven rate came in at 1.54%, historically low … Continue reading

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Catching up on Thursday’s auction of a new 10-year TIPS

I’ll be working Thursday morning, so I won’t be able to post an update then. So, let’s take a look at where the auction of CUSIP 912828S50 stands right now, after the market close on Wednesday. Last week, I theorized … Continue reading

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U.S. inflation rose 0.2% in June; are days of deflation finally over?

Summary The 0.2% number matched the consensus estimate, so no surprise for investors. Non-seasonally adjusted inflation continued a trend of strong increases; it’s up 1.22% over three months. Core inflation is up 2.3% over the last 12 months, certainly not … Continue reading

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Coming July 21: Auction of a new 10-year TIPS

Summary The coupon rate and real yield to maturity for CUSIP 912828S50 will be set by the auction. The current market is pointing to a coupon rate of 0.125% and a real yield of about 0.03%. Why would buyers be … Continue reading

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