Category Archives: Investing in TIPS

5-Year TIPS Reopening Gets Real Yield Of -0.766%, Lowest Since 2013

Summary Demand looked strong at this auction, with the real yield falling about 7 basis points from the secondary market’s yield earlier in the morning. The inflation breakeven rate came in at 1.10%, a reasonable number given our uncertain deflationary … Continue reading

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5-Year TIPS Reopening Heads Toward Worst Yield In 7+ Years

Summary The real yield looks likely to drop to about -0.65%, the lowest yield for any auction of this term since April 2013. The inflation breakeven rate is running at about 0.98%, up from recent lows but still attractive as … Continue reading

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Deflationary Trend Continues As May Inflation Fell -0.1%

Summary Price declines reflected the effects of COVID-19 shutdowns, with gas prices falling, along with prices of auto insurance, air travel, apparel and lodging away from home. Price increases hit more necessary items: Food, shelter, medical care and, alcohol. How … Continue reading

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10-Year TIPS Reopening Gets Real Yield Of -0.47%, Lowest Since 2013

Summary In its five-month auction history, CUSIP 912828Z37 showed remarkable volatility, with a swing of 115 basis points from March to May. Today’s real yield of -0.47% was the lowest at auction for any 9- to 10-year TIPS since March … Continue reading

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After A Surreal Surge, This 10-Year TIPS Is Now Depressingly Normal

Summary The Treasury will reopen a 10-year TIPS at auction on Thursday, with the real yield to maturity expected to be well below zero. This TIPS — CUSIP 912828Z37 — had an amazing reopening auction in March, just as Treasury … Continue reading

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