Category Archives: Investing in TIPS

Treasury formally announces 5-year TIPS auction on April 19

The U.S. Treasury today posted its formal announcement of the five-year TIPS to be auctioned Thursday, April 19. It is CUSIP 912828SQ4, a new issue. It will most likely auction with a coupon yield of 0.125%. We already know this … Continue reading

Posted in I Bond, Investing in TIPS, Savings Bond | 1 Comment

Food, gas costs push up U.S. inflation

The U.S. Labor Department reported today that the Consumer Price Index rose 0.3% in March, mostly because of higher food and gas prices. In 12 months that ended in February, prices rose 2.7 percent. That’s below last year’s peak year-over-year … Continue reading

Posted in Investing in TIPS | 4 Comments

Let’s be negative: Making the case for a 5-year TIPS

The Treasury on April 19 will auction a new issue 5-year Treasury Inflation-Protected Security, and it is likely to have a deeply negative base interest rate. I am going to try my best to explain why anyone would buy this … Continue reading

Posted in Investing in TIPS | 2 Comments

Stocks versus TIPS: What’s next for the ‘prudent investor’?

Are Treasury Inflation-Protected Securities now an unsafe or unwise investment? Is the Treasury market at the start of a long bear market? Will stocks greatly outperform bonds over the next 10 years? Burton Malkiel, author of ‘A Random Walk Down … Continue reading

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10-year TIPS reissue auctions at -0.089%, an all-time low

The Treasury just posted the results for CUSIP 912828SA9, a 9-year, 10-month reissue. The previous low for any 10-year TIPS issue or reissue was this same CUSIP 912828SA9, first issued on Jan. 19. It went off two months ago at … Continue reading

Posted in Investing in TIPS | 3 Comments