Vanguard Inflation-Protected Securities Fund Investor Shares
PCE Inflation Expected to Remain Low for Now, but on Path to 2%
The July 2016 meeting minutes showed that policymakers expect PCE inflation to remain low in the short term, primarily because of the lingering effect of the fall in crude oil prices.
Is PCE Inflation Good Enough for a Rate Hike in 2016?
A sharp drop in PCE inflation was caused by the decline in crude oil prices that began in mid-2014.
Understanding PCE Inflation, the Ultimate US Rate Hike Spoiler
According to the April 2016 meeting minutes, policymakers expect the rise of inflation to be gradual, though core inflation sped up in early 2016.
What Are TIPS and How Do They Benefit Investors?
Treasury inflation-protected securities (or TIPS) protect the value of debt securities from eroding due to a rise in inflation.
Was the Fed’s March 2016 Policy Statement Really Ultra-Dovish?
According to the March 2015 policy statement, policymakers now forecast only up to two rate hikes this year. This translates to a total rate hike of 50 basis points.
High Yield Rocketed for 10-Year TIPS Auction
The US Treasury auctioned 10-year TIPS worth $15 billion on January 21, 2016. The amount was $2 billion higher than it was in the November 2015, auction.
Fixed-Income Mutual Fund Investing in 2016
In a rising interest rate environment, fixed-income mutual fund portfolios with short durations see higher inflows, as this segment is expected to do well.
High Yield Rose Due to the 10-Year TIPS Auction
Nominal bond yields rise due to higher inflation expectations. TIPS protect the value of debt securities from eroding due to inflation.