Category Archives: Investing in TIPS

TIPS yields go negative to inflation – what’s the best move now?

Summary TIPS yields have fallen to their lowest levels in three years. The TIP ETF is up about 6.9% year to date, and it has outperformed the overall bond market. Thinking you need inflation protection? Consider I Bonds instead of … Continue reading

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On a rare Wednesday auction, 30-year TIPS reopening goes off with a real yield of 0.905%

Hmmm… a TIPS auction on a Wednesday? I have to admit, I didn’t see that coming. I have been covering TIPS auctions for 5 1/2 years, and every single one was on a Thursday, unless the Thursday was a federal … Continue reading

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Up next: A particularly ugly reopening auction for a 30-year TIPS

Summary CUSIP 912810RR1 is going to be pricey and unattractive. Federal Reserve didn’t do investors any favors by backing off from rate increases. Definitely avoid buying this TIPS in a taxable account; it will be cash flow negative. I posted … Continue reading

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U.S. inflation rose 0.2% in May – a lower number than expected

Summary The May number came in below the consensus estimate of 0.3%, but core inflation rose to 2.2% for the last 12 months. Increases in energy and shelter prices were offset by declines in food, apparel, and used cars. Non-seasonally … Continue reading

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10-Year TIPS reopening auctions with a real yield of 0.275%

The after-inflation yield was the lowest for any 9- to 10-year TIPS in more than a year. This TIPS has a coupon rate of 0.625%, so buyers paid an adjusted price of about $103.53 for $100 of par value. The … Continue reading

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