Looking To Hoard Cash? Consider 4-Week Treasurys

Posted on February 4, 2018 by Tipswatch

Summary

  • Your cash in brokerage accounts is probably earning near zero. And your local bank or credit union won’t offer you much more.
  • 4-week Treasurys are paying top-of-the-market yields with a very short term. They will react quickly to rising rates, with no credit risk and no interest rate risk.
  • You can buy them with no commission at Treasury Direct and set up automatic reinvestments.

Read my full analysis on SeekingAlpha.com

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New 10-Year TIPS Auctions With A Real Yield Of 0.548%, Highest In 2 Years

Posted on January 18, 2018 by Tipswatch

Summary

  • The real yield of 0.548% was the highest for any 9- to 10-year TIPS auction since January 2016.
  • The coupon rate was set at 0.500%, the first time in history that any 10-year TIPS received this coupon rate.
  • The inflation breakeven rate climbed to 2.06%, highest in more than three years.

Read my full analysis on SeekingAlpha.com

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New 10-Year TIPS Auction Jan. 18 Is Definitely Worth A Look

Posted on January 14, 2018 by Tipswatch

Summary

  • The current real yield estimate of 0.54% would be the highest at auction since January 2016.
  • The inflation breakeven rate has inched up to 2.01%, but that’s still attractive enough versus the nominal Treasury’s yield of 2.55%.
  • Looking ahead: 5 more auctions of this maturity in 2018.

Read my full analysis on SeekingAlpha.com

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U.S. Inflation Rose 0.1% In December, Slightly Below Expectations

Posted on January 12, 2018 by Tipswatch

Summary

  • The headline miss probably isn’t significant, but core inflation rose 0.3%, above the consensus estimate of 0.2%.
  • Non-seasonally adjusted inflation dipped 0.06% in December and I Bond investors may be facing a weak variable rate reset on May 1.
  • Wages increased faster than inflation in December, the BLS said. That’s a trend worth watching. If it continues; real inflation could follow.

Read my full analysis on SeekingAlpha.com

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I Bond Investors: Here’s Your Buying Guide For 2018

Posted on January 9, 2018 by Tipswatch

Summary

  • Wait at least until the March inflation number is announced on April 11.
  • You then enter a three-week ‘limbo period’ when you can decide to buy before or after the May 1 rate reset.
  • Don’t bother buying I Bonds as a short-term investment. You can do better with one-year, best-in-nation bank CDs.

Read my full analysis on SeekingAlpha.com 

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