Category Archives: Investing in TIPS

U.S. Savings Bonds Are A Surprisingly Attractive Investment Right Now

Summary Both real and nominal yields have plummeted in 2019, with nominal yields on government debt dipping into the negative in Europe and Asia. Returns on I Bonds and EE Bonds still have the same terms that the Treasury set … Continue reading

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Real Yield In 5-Year TIPS Auction Drops To 0.152%

Summary Five-year real yields have dropped nearly 100 basis points in the last six months. That’s a huge move in anticipation of Federal Reserve rate cuts. Today’s real yield of 0.152% had to be a disappointment to investors, who also … Continue reading

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This Week’s 5-Year TIPS Reopening Will Reset The Market

Summary Expect volatility in the Treasury market this week because the Federal Reserve’s Open Market Committee will issue a statement Wednesday, one day before the auction. At this point, CUSIP 128286N5 is heading toward a real yield of about 0.35%, … Continue reading

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VTIP: As Yields Sink, Consider Adding Inflation Protection

Summary The Federal Reserve looks likely to begin cutting short-term rates in 2019, possibly as much as 75 basis points over the next year. Yields for money market funds and short-term Treasurys will track lower with those rate cuts. Inflation-protected … Continue reading

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U.S. Inflation Slowed In May With Increase Of 0.1%

Summary Both headline and core inflation numbers fell short of consensus estimates. Gasoline prices fell 0.5% in May, following a 5.7% increase in April. Gas prices could be a deflationary force in coming months. May’s mild inflation report leaves the … Continue reading

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FRNs: Their Time In The Spotlight Is About To End

Summary FRNs, 2-year Treasury investments, have been in the news recently because their yields topped all Treasury investments with terms up to 10 years. FRNs are attractive during a time of rising interest rates, especially for cash you know you … Continue reading

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10-Year TIPS Reopening Generates A Real Yield Of 0.567%

Summary The real yield of 0.567% was in line with where this TIPS was trading Thursday morning. No surprise, and the auction appears to have been met with strong demand. Buyers had to pay a lofty premium, however, because the … Continue reading

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