Category Archives: Investing in TIPS

Investors get another chance to demonstrate insanity on Thursday, April 18, 2013, when the U.S. Treasury will auction a new 5-year Treasury Inflation-Protected Security. This thing will be expensive. CUSIP 912828UX6 will have a coupon rate of 0.125% and will … Continue reading →

If you buy and hold Treasury Inflation-Protected Securities at TreasuryDirect, as I do, you’re violating a conventional wisdom rule of investing: Don’t hold TIPS in a taxable account. I disagree with that conventional wisdom, more or less, but mainly because … Continue reading →

The Treasury just announced that its reissue of CUSIP 912828UH1 – creating a 9-year, 10-month TIPS – auctioned with a yield to maturity of -0.602%. That means buyers of this Treasury Inflation-Protected Security are accepting 0.602% less than the rate … Continue reading →

I am getting tired of this pattern. I will attempt to offer no proof, but I am getting a strong feeling that just before every significant TIPS auction, we get a world crisis that drives up the prices of Treasurys, … Continue reading →

‘Headline’ inflation – properly called Consumer Price Index for All Urban Consumers (CPI-U) – rose a very sharp 0.7% in February, the Bureau of Labor Statistics reported this morning. It was the biggest monthly rise since June 2009. This was … Continue reading →