VTIP News and Press, Vanguard Short-Term Inflation-Protected Securities From 06/05/23

2023-06-05 13:20:00 ET Summary We see the market’s focus returning to higher-for-longer rates and sticky inflation after a U.S. debt ceiling deal. We prefer an up-in-quality portfolio. U.S. stocks hit 2023 highs after the debt ceiling deal. Yields rose amid the specter of r...

2023-05-30 11:35:00 ET Summary Inflation has proven sticky, even as growth weakens. Markets are realizing that policy rates are set to stay higher for longer. We like quality in stocks and bonds. Tech stocks surged further last week even as debt ceiling talks spurred bouts of vola...

2023-05-29 11:05:00 ET Summary I just refreshed my favourite U.S. breakeven inflation chart and was surprised by how placid pricing has been. Although the 10-year breakeven inflation rate scooted upwards after the pandemic, it is below where it was pre-Financial Crisis, and roughl...

2023-05-10 13:30:19 ET Summary The headline CPI numbers are being interpreted as confirming that the Federal Reserve will pause rates and then, most likely begin to lower them. The details of the CPI report paint a more complex picture which we go into here. The month-over-mon...

2023-04-30 16:33:00 ET The share of U.S. consumers who were stretched too thin slipped to 60% in March from 62% in February and from 64% in the year-earlier period, digital marketplace bank LendingClub ( NYSE: LC ) said in a report this past week, as they seemingly continued to find...

2023-04-30 04:49:04 ET Summary Inflation continues to go down, reaching 5.0% in March. As inflation goes down so does the yield and expected returns of TIPs. VTIP invests in short-term TIPs, and has been negatively impacted by these trends. Author's note: This arti...

2023-04-17 07:00:00 ET Summary The multi-year high recorded by the 10-year TIPS yield on 3rd November of last year coincided with the end of a multi-year downward correction in the US$ gold price. The short-term low in the 10-year TIPS yield on 1st February of this year coincided ...

2023-04-11 12:43:15 ET Summary TIPS have struggled over the past year despite a high level of inflation. The chief cause of underperformance - a rise in real yields - is now a tailwind for the bonds and why we find them attractive. With current and trailing-twelve month yields...

2023-04-10 11:30:00 ET Summary We upped our overweight of inflation-linked bonds in March to quickly take advantage of the market pricing lower inflation - our new playbook in action. Bond yields rose after data showed a still-tight U.S. labor market. We think that keeps inflation...

2023-04-03 16:19:28 ET Summary I discuss two of James Picerno’s posts (Part I & Part II) from last week. I conclude that a market uptrend began on March 30 and 31. The Bull Market, which began 14 years ago, still moves higher. Introduction On Mar...