10-Year TIPS Reopens May 18; Here’s What To Expect

Summary

  • CUSIP 912828V49 is currently trading in the secondary market with a real yield of 0.47%.
  • If you are considering a purchase, watch the secondary market, which will predict the likely yield.
  • The 10-year inflation-breakeven rate is currently at an attractive 1.86%.

Read my full analysis at SeekingAlpha.com

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U.S. Inflation Increased 0.2% In April, Below Expectations

Summary

  • Headline inflation was 2.2% over the last 12 months, down from 2.7% in February.
  • Year-over-year core inflation dropped to 1.9%, the lowest number since October 2015.
  • These numbers ease pressure on the Federal Reserve. Rate increases coming? Probably, but no surprises.

Read my full analysis at SeekingAlpha.com

Also, I have updated my Tracking Inflation and I Bonds page with these new numbers.

And here are the new TIPS inflation indexes for June.

 

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Time To Consider Short-Term Treasurys? Yields Have Hit An 8-Year High

Summary

  • A 26-week Treasury just auctioned with an investment yield of 1.036%.
  • 13-week yields are closing in on the 1% mark and may outperform your cash holdings.
  • These short-term Treasurys can be purchased without commissions or fees and are ultra-safe and ultra-liquid.

Read my full analysis at SeekingAlpha.com

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Inflation Analysis: Why Spaghetti With Chicken Livers Is A Bargain In 2017

Summary

  • A Charlotte restaurant offers a unique look at inflation over 54 years.
  • Think gas prices were cheap in 1963? They still are.
  • The stock market has been the best hedge against inflation since 1963. Is that a positive thing? Or an omen?

Anyone who drove a car before the 1973 gas crisis fondly remembers gasoline at 25 cents a gallon. That’s what it was selling for back in 1963. Those were the days! But in reality, gas prices are almost as cheap today as they were in 1963.

Read my full analysis on SeekingAlpha.com

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Breaking News: U.S. Treasury Holds I Bond’s Fixed Rate At 0.0%

Summary

  • I Bonds purchased from May to October 2017 will earn a composite rate of 1.96% for six months.
  • If you haven’t bought I Bonds in 2017, I suggest waiting until October.
  • Terms for EE Bonds didn’t change – their value still doubles after 20 years, making them a very competitive investment for the right buyer.

Read my full analysis at SeekingAlpha.com

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