TIPZ

BlackRock downgrades nominal U.S. Treasurys to Underweight and upgrades TIPS to Overweight, saying Democratic nominee's Joe Biden lead is expanding in national polls over President Trump and the likelihood of

The result, which dipped below recent market indicators, was the second-lowest real yield for any TIPS auction of this term.Investors had to pay a sizable premium for this TIPS, about 7.5% above par value, to collect a coupon rate of 0.125% (plus future inflation accruals).The inflation breakeven rate climbed to 1.69%. TIPS real yields have been declining at the same time nominal yields are rising.

Existing home sales have an impact on the economy but it is mostly in the form of sales of home goods - refrigerators, washers, dryers, and furniture, etc.Housing is going gangbusters right now, but for it to really impact the economy it will have to continue for a while.10-year TIPS yields have come off their lows, which means a slight rise in real growth expectations.

AB has been a longstanding proponent of investing globally within the bond markets.We advocate going global on a currency-hedged basis.In our view, US investors should remain in global bond markets because those negative non-US yields can be turned into an opportunity, thanks to currency hedging.

"Japanification" is the process of other countries' economies becoming like that of Japan: flatlined, with little to no growth or inflation and interest rates stuck at zero indefinitely. Because of the Monetary Death Spiral process that I've described elsewhere, many countries around the world are undergoing the process of Japanification. With interest rates now stuck at zero for the long haul and the Fed focused on employment above all else, the US has now completed the process. I go through nine economic metrics to show how the United States is walking down the path of Japan.

The real yield of -0.966% was slightly higher than where this TIPS was trading on the secondary market just minutes before the auction's close.The inflation break-even rate settled in at 1.65%, which looks like a reasonable number. Inflation hawks should see this as a positive for this investment.This TIPS auction could be considered "normal" by the strange standards of normality in 2020.

Federal Reserve Chairman Jerome Powell has pledged to hold interest rates near zero until the US economy reaches 4% unemployment and 2% average inflation. In all likelihood, it will take a very long time (6+ years) to reach that goal, if we reach it at all before the next recession. The increasing amount of permanent damage done by COVID-19 makes the fabled "V-shaped recovery," and thus the hope of higher rates, extremely unlikely. Here are three high-yielding dividend stocks that offer safe income streams and should benefit from the low-rates environment.