S&P 500
7,616.20
-0.08%
Dow Jones
51,330.50
-0.08%
Nasdaq 100
30,650.20
-0.21%
Russell 2000
2,930.83
-0.08%
FTSE 100
10,375.80
-0.12%
Nikkei 225
68,499.20
+1.48%

Banking, finance, and taxes

TIPS Buyers Get Negative Interest Rate

Photo of Paul Ausick
By Paul Ausick Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
Today’s auction of $13 billion in US 10-year Treasury Inflation-Protected Securities (TIPS) went off at a yield of -0.89%, just the second time that yields have turned negative. Demand for the securities came in at 2.81x the total value of the offer.

Buyers are willing to accept a negative interest rate on TIPS because the securities also pay the rate of inflation. 10-year Treasury note yields are also down today as the weak manufacturing reports out of Europe and China made US debt more desirable.

DISCLOSURE:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org). Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees. Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org). There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options  Investing in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation.
Follow 24/7 Wall St. on Google
Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

Continue Reading

Jon C. Ogg |

Investors Still Buying Treasury TIPS At Negative Interest Rates

The government is somehow managing to borrow money at what are negative interest rates right now via the Treasury Inflation-Protected…

Jon C. Ogg |

QE2 Backlash: US Becoming a Currency Manipulator (GLD, DGP, TBT, FAS)

The stock market and the commodities markets have so far supported QE2.  Longer-dated bond yields have risen as a result…

Jon C. Ogg |

Treasury Still Selling Inflation-Protection TIPS at Negative Yields

Imagine not just loaning the government money for free, but at negative nominal rates. Another fresh Treasury auction of 10-year…

Paul Ausick |

Fifth Consecutive Negative Yield TIPS Auction

If one is looking for a deflationary signal about the US economy, a good place to start might be with…

Jon C. Ogg |

A How-To Guide for Betting Against Treasuries, Bracing for Higher Interest Rates

Is the Treasury market finally living up to its threat as the next big short? The money that was made…

Jon C. Ogg |

St. Louis Fed’s Bullard Sees QE Continuation Under Low Inflation

By now you have figured out that the Federal Reserve is full of mixed opinions when it comes to keeping…

TIP ETF Delivers 4.5% Yield With CPI at a 90th-Percentile High, but Does It Belong in Your Portfolio?
Austin Smith |

TIP ETF Delivers 4.5% Yield With CPI at a 90th-Percentile High, but Does It Belong in Your Portfolio?

Inflation has been the defining fixed income concern of this decade, and the iShares TIPS Bond ETF (NYSEARCA:TIP | TIP…

Jon C. Ogg |

New Way to Predict Inflation Expectations (DB)

Deutsche Bank AG (NYSE: DB) has announced a new methodology of predicting inflation.  How well it works is anyone’s guess,…

Federal Reserve Avoids Market Shocks in Decision on Interest Rates
Jon C. Ogg |

Federal Reserve Avoids Market Shocks in Decision on Interest Rates

If you were looking for a major change out of the Federal Reserve’s decision on interest rates, the August 1,…

Top Gaining Stocks

Hewlett Packard Enterprise
HPE • Vol: 153,197,465
Enphase Energy
ENPH • Vol: 8,360,053
Corning
GLW • Vol: 18,152,646
Alexandria Real Estate Equities
ARE • Vol: 4,337,015
Aptiv
APTV • Vol: 6,761,325

Top Losing Stocks

Trade Desk
TTD • Vol: 21,905,513
Intuit
INTU • Vol: 7,383,018
Coterra Energy
CTRA • Vol: 73,319,495
Cboe Global Markets
CBOE • Vol: 5,000,011
HP
HPQ • Vol: 29,259,826