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November 17, 2011
Bloomberg Businessweek: U.S. TIPS Demand Wanes as Europe Crisis Pares Inflation Outlook
The Treasury Inflation Protected Securities, or TIPS, were sold at a yield of 0.99 percent, compared with a forecast of 0.060 percent, the average estimate in a Bloomberg News survey of seven of the Federal Reserve’s 21 primary dealers that are required to bid on U.S. debt auctions.
November 17, 2011
TREASURY AUCTION RESULTS
High Yield 0.099%
0.99%? 0.099%? It's all good. At least it wasn't reported as 99% in honor of the Wharton School of Business.
Students at the Wharton School for Business at the University of Pennsylvania mocked Occupy Wall Street protesters...
As for Wharton School of Business mocking, I'm reserving that for Jeremy Siegel of the Wharton School of Business and Mark Zandi who got his Ph.D. at the Wharton School of Business.
Maybe that's just me though.
See Also:
Does Jeremy Siegel Live in a Cave?
Sunday Night Futures
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Weekend:
• Schedule for Week of November 24, 2024
Monday:
• At 8:30 AM ET, *Chicago Fed National Activity Index* for October. This is
a composite index of ...
4 hours ago
5 comments:
Looks like we may be crossing the Rubicon again soon!
CP,
How many licks does it take to get to the center of a Rubicon Pop?
1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, ...
The world may never know! ;)
November 1, 2011
Buy and Hold Dies As Government Bonds Beat Stocks (TBT, TLT, IEF, TBF, TIP)
In trying to game the future, we can be certain of a few things:
* The total debt burden will keep increasing.
* The leaps from euphoria to despair will keep wrenching markets back and forth.
* “Buy and hold,” without significant modifications, is a dangerous strategy.
For those just tuning in, this is an inside joke.
According to the article, the forecast for the 10-year TIPS auction was 0.060 percent. The actual yield came in at 0.099 percent (not the 0.99 percent that the article claimed, which was off by a factor of 10).
So what does this mean?
If we invest $1000 then we should expect to earn an additional 39 cents per year in interest.
And what does that mean?
Savers are no longer screwed! Get out the party hats! Woohoo!
Will the sarcasm ever end?
(That's a rhetorical question filled with sarcasm by the way.)
I also want to point out that the 0.039% increase in the 10-year TIPS yield on auction day fits in quite nicely with the blue trend line in the "Buying TIPS on Auction Day" chart found here. Go figure.
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