Category Archives: Investing in TIPS

Up next: 5-year TIPS reissue will auction Dec. 19, 2013

The Treasury announced Thursday it is reopening CUSIP 912828UX6, creating a 4-year 4-month TIPS with a coupon rate of 0.125%. Because of upcoming holidays, the auction on Thursday, Dec. 19, will end earlier than usual: 11 a.m. for noncompetitive bids … Continue reading →

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Why the U.S. budget deal might lead to higher interest rates

The new, bipartisan budget deal in Congress – crafted to avert another government shutdown – could have a ‘surprise’ effect: It could lead to higher interest rates in 2014. The big reason is that it opens the door for the … Continue reading →

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Frank talk from Fidelity about TIPS

One side benefit of establishing even a small stake in the Fidelity Inflation-Protected Bond Fund (FINPX) is getting Fidelity’s annual and semiannual shareholder reports. The managers of this fund – William Irving and Franco Castagliuolo – seem to be straight … Continue reading →

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TIPS mutual funds got a reality check in 2013, more trouble to come?

Yes, it has been a bad year for Treasury Inflation-Protected Securities, but as I will explain, it all depends on how you define ‘bad.’ As a buy and hold-to-maturity investor in TIPS, with a ladder crossing many years of maturities, … Continue reading →

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10-year TIPS reissue auctions at 0.560%

The Treasury site is suffering hiccups today, but it has finally posted results for the $13 billion reissue of CUSIP 912828VM9, creating a 9-year 8-month Treasury Inflation-Protected Security. It auctioned with a yield of 0.560%, indicating decent demand for this … Continue reading →

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