TreasuryDirect, Ditch the ‘Gift Box’ and Raise the I Bond Purchase Cap
TreasuryDirect has sent a new email urging holders of Series I Savings Bonds in the gift‑box program to deliver their bonds promptly. The notice clarifies that while only one gift bond can be delivered at a time, recipients can receive unlimited amounts, effectively bypassing the $10,000 annual purchase cap once the gifts are delivered. This creates a loophole that lets investors with trusted partners accumulate far more inflation‑linked bonds in a single year. The agency is also hinting at broader changes to the gift‑box system and the overall I‑Bond purchasing rules.
5-Year TIPS Auction Gets a Real Yield of 1.367%
On Tuesday, the U.S. Treasury auctioned 5‑year Treasury Inflation‑Protected Securities (TIPS) with a real yield of 1.367%, marking a modest increase over the prior auction. The offering attracted robust demand, pulling in roughly $38 billion in bids from both domestic and...
Here Comes a Rather Unexciting 5-Year TIPS Auction
The Treasury will conduct a routine five‑year Treasury Inflation‑Protected Securities (TIPS) auction, with market consensus that the fixed coupon will stay at roughly 0.9% after the May reset. Investors, including newcomers to the TIPS market, are planning to submit bids...
I Bond Dilemma: Buy in April or Just Keep Waiting?
Investors are debating whether to buy Treasury Series I Savings Bonds in April or wait for potentially higher variable rates later in the year. The discussion highlights the bond's dual‑interest structure— a fixed rate set at issuance and a semi‑annual...
March Inflation Sets I Bond’s New Variable Rate at 3.34%
The Treasury announced that the March Consumer Price Index has set the new I Bond variable rate at 3.34% annualized, reflecting a modest slowdown in six‑month inflation. This rate applies to all newly issued I Bonds and will be combined with the...
A 5-Year TIPS Is Maturing April 15. How Did It Do as an Investment?
A five‑year Treasury Inflation‑Protected Security (TIPS) that matured on April 15 delivered a modest real return, lagging behind comparable Series I Savings Bonds. The bond’s real yield had been negative for much of its life, eroding its inflation‑hedge advantage. Despite...
I Bond’s Fixed Rate Is Likely to Hold at 0.90% at May 1 Reset
U.S. Treasury I‑Bonds are expected to keep their fixed component at 0.90% when the next rate reset occurs on May 1, leaving the composite yield at 4.03% for the full six‑month period. The stable fixed rate preserves the bond’s attractive inflation‑adjusted...
10-Year TIPS Reopening Gets Real Yield of 1.896%
The Treasury announced a reopening of the 10‑year TIPS auction, delivering a real yield of 1.896%. The yield jumped noticeably, signaling heightened market sensitivity ahead of the weekend. Investors appeared reluctant to hold positions, prompting some traders to sit out...
Chaos of War Bolsters 10-Year Real Yield Heading Into This Week’s Auction
War‑driven uncertainty in Europe and the Middle East has pushed the 10‑year Treasury Inflation‑Protected Securities (TIPS) real yield to its highest level in a decade, setting the stage for this week’s Treasury auction. The surge reflects heightened inflation expectations and...
February Inflation Rose 0.3%, as Expected. Is This Our Last ‘Tame’ Reading for Awhile?
U.S. consumer price index (CPI‑U) rose 0.3% month‑over‑month in February, matching analysts' expectations. Core inflation, which excludes food and energy, stayed above the Federal Reserve's 2% target, signaling persistent price pressures. The modest increase follows a series of tame readings,...
30-Year TIPS Auction Gets Real Yield of 2.473%, Second Highest in 16 Years
The U.S. Treasury’s latest 30‑year Treasury Inflation‑Protected Securities (TIPS) auction posted a real yield of 2.473%, the second‑highest level in the past 16 years and the highest since the series was relaunched in February 2010. Demand was strong, with the...
For the Right Investor, This Week’s 30-Year TIPS Auction Will Have Appeal
The Treasury will auction a 30‑year Treasury Inflation‑Protected Security (TIPS) this week, offering a real‑yield that could attract investors seeking long‑term inflation hedges. Analysts note that redeeming early‑year I Bonds can generate an unexpected tax liability, complicating cash‑flow planning. Recent CPI...
January’s Mild Inflation Report Comes with ‘Qualifications’
January’s consumer‑price index showed modest headline inflation, rising 0.3% month‑over‑month and 3.2% year‑over‑year, but the report included several qualifiers. Core CPI eased to 4.8% annual, driven by lower energy costs, while shelter and services remained sticky. Analysts highlighted the mixed...