Category Archives: Investing in TIPS

Summary The overall TIPS market has had a huge run-up of almost 16% since the bond market turmoil of mid-March. The TIP ETF hit a record high of $126.51 last week, but its one-year performance has been in line with … Continue reading →

Summary There have been 104 auctions of this 9- to 10-year term since 1997 and today’s result was a record low yield, by a large margin. The inflation breakeven rate came in at 1.52%, a reasonable number but higher than … Continue reading →

Summary The real yield for CUSIP 912828ZZ6 could end up around -0.82%, the lowest in the 23-year history of TIPS auctions of this term. Fears of future inflation – spurred by massive monetary and fiscal stimulus programs – should attract … Continue reading →

Summary Both all-items inflation and core inflation rose faster in June than the consensus estimates. Will any of this alter the Federal Reserve’s commitment to ultra-low interest rates? No. The June inflation report offers a glimmer of hope for a … Continue reading →

Summary The Social Security Administration uses an esoteric inflation index and only three months of data to determine the COLA. As of the May inflation report, the COLA would be set to zero. But May’s number is pretty much irrelevant … Continue reading →