Latest news with #CPI-U
CNBC
27-05-2025
- Business
- CNBC
A market options hedge as other risks lurking out there despite Tuesday's rally
Bond yields provide critical insights into economic expectations, inflation, and currency valuation. Higher bond yields, especially on government bonds, can signal expectations of stronger economic growth. Lower yields suggest economic slowdown or recession fears, as investors flock to safe assets, driving bond prices up and yields down. Higher economic growth is good, but higher inflation is not, and yields also incorporate inflation forecasts. Higher yields may also indicate rising inflation expectations, as investors demand compensation for eroding purchasing power. In theory, investors can distinguish whether yields are increasing due to better economic expectations or worse inflation expectations by observing the spread between nominal yields and inflation-protected securities (TIPS), which reflects breakeven inflation rates, or at least inflation as measured by CPI-U . Consumers generally favor a stronger currency, which increases their purchasing power of imported goods. Domestic producers and exporters favor a weaker currency, whose goods will be more competitive. Higher domestic yields, all else equal, elevate the local currency's value. 'Carry trade' risk For instance, if U.S. 10-year yields rise relative to German bunds or Japanese bonds, the dollar may strengthen against the euro or yen. Lower yields reduce a currency's appeal, potentially weakening it against other currencies, especially if other central banks offer higher rates. These yield differentials are key drivers in carry trades. A narrowing yield differential between U.S. and foreign bonds often pressures the dollar, and potentially other dollar-denominated risk assets. In early 2024, the spread between Japanese and U.S. Treasury rates began to narrow, falling by ~130 basis points from more than 4% to less than 2.8%. (1 basis point equals 0.01%.) This prompted concerns about substantial deleveraging as investors worried about an unwinding of the yen carry trade. A drop in U.S. rates propelled that swing, but Japanese government bond yields have recently risen sharply. This is problematic because it might pressure the carry trade if Japanese rates rise more quickly than US rates, and the amounts involved are substantial. Japan is even more indebted than the U.S. due to the size of its economy, roughly 250% of Japan's GDP, with total government debt of approximately $8 trillion. If the spread does not compress, then that suggests U.S. Treasury rates would also rise, which could pressure other risk assets. If Japanese rates continue to increase, this presents a global risk. The S & P 500 has clawed back more than 70% of its peak-to-trough losses from the all-time highs in February, and the Cboe Volatility Index (VIX) , although elevated, is well off the April peak. For these reasons, I think re-initiating hedges might be advisable. For example, a June 30th (month-ending) SPDR S & P 500 ETF Trust (SPY) 575/525 put spread ($50 wide) cost ~ $8.90 per contract or just over 1.5% of the current share price of the ETF, and less than 18% of the difference between the strikes, offering a payoff of better than 4.5:1. The trade: Buy SPY June 30 $575 put Sell SPY June 30 $525 put DISCLOSURES: (None) All opinions expressed by the CNBC Pro contributors are solely their opinions and do not reflect the opinions of CNBC, NBC UNIVERSAL, their parent company or affiliates, and may have been previously disseminated by them on television, radio, internet or another medium. THE ABOVE CONTENT IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY . THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL'S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
Yahoo
19-05-2025
- Business
- Yahoo
Trash collection fees to increase residential utility bills starting July 1
May 19—Utility bills in Newton will see an increase on July 1. The Newton City Council this past month approved a new fee schedule for solid waste and recycling collection following a new contract with Dodd's Trash Hauling and Recycling. The increase amounts to $3.39 per month for each household in town. Earlier this year, the city distributed requests for proposals to waste management companies, seeking bids for collections services consistent with the existing contract. Three businesses reached out to the city, including local provider Dodd's Trash Hauling and Recycling, which was the clear favorite. Back then it was noted a new contract would result in higher rates for residents no matter which waste management company was chosen. Currently, residents pay $15.16 per month for waste collection services. The new contract would increase that monthly rate for residential units to $18.55 per month. Included in the new five-year contract with Dodd's is an annual rate adjustment tied to the Consumer Price Index for All Urban Consumers (CPI-U). The rate covers solid waste and recycling, landfill tipping fees, recycling tipping fees, leaf bag collection and Christmas tree collection.
Hindustan Times
13-05-2025
- Business
- Hindustan Times
April CPI report: What's exactly in the latest inflation report
CPI report April 2025: The Consumer Price Index (CPI) report was released on Tuesday, showing inflation eased to a four-year low in April as the initial impact of President Donald Trump's tariffs. Overall consumer prices increased 2.3% from a year earlier, down from a 2.4% rise the previous month. The CPI for All Urban Consumers (CPI-U), showed a 0.2% monthly increase on a seasonally adjusted basis, rebounding from a 0.1% decline in March. Over the 12 months ending April, the all-items index rose 2.3% before seasonal adjustment, the smallest annual increase since February 2021. Shelter: Up 0.3% monthly, contributing over half the monthly rise. Owners' equivalent rent increased 0.4%, rent 0.3%, and shelter rose 4.0% annually, a persistent inflationary pressure. Energy: Rose 0.7% monthly, led by natural gas (+3.7%) and electricity (+0.8%), though gasoline dipped 0.1% (or -2.3%). Annually, energy fell 3.7%, with gasoline down 11.8% and fuel oil -9.6%, but natural gas surged 15.7%. Food: Declined 0.1% monthly, with food at home down 0.4%—the largest drop since September 2020—driven by a 12.7% fall in eggs. Food away from home rose 0.4%. Annually, food increased 2.8%, with food at home up 2.0%, eggs +49.3%, and food away from home +3.9%. Core CPI (excluding food and energy): Up 0.2% monthly (versus 0.1% in March) and 2.8% annually (down from 3.2% or 3.3% in prior reports), reflecting stable underlying inflation. Increases: Household furnishings (+1.0%), motor vehicle insurance (+0.6%), medical care (+0.5%), hospital services (+0.6%), prescription drugs (+0.4%), education (+0.1%), and personal care (+0.1%). Declines: Airline fares (-2.8%), used cars and trucks (-0.5%), apparel (-0.2%), and communication. Annual Gains: Motor vehicle insurance (+6.4%), education (+3.8%), medical care (+2.7%), and recreation (+1.6%). The BLS replaced survey data for the leased cars and trucks index with vendor transaction data to enhance accuracy. The CPI-U index reached 320.795 (1982-84=100), up 0.3% unadjusted monthly. The CPI-W rose 2.1% annually, and the Chained CPI-U increased 2.1%. Selected CPI series will be rebased to December 2024=100 with July 2025 data.
Yahoo
09-04-2025
- Business
- Yahoo
Kansas Legislature yet to approve $875 million in property tax funding for K-12 public schools
A deputy commissioner of the Kansas State Department of Education informed members of the Kansas State Board of Education the 2025 Legislature has yet to approve collection of an estimated $875 million in property taxes to fund public education statewide in 2025-2026. (Kansas Reflector screen capture of Board of Education livestream) TOPEKA — The Republican-controlled Kansas Legislature returns to work Thursday after neglecting to perform during the regular part of the 2025 session an annual obligation to affirm collection of $875 million in property taxes to finance public schools statewide. It's assumed by education administrators and advocates the wrap-up portion of the legislative session — typically reserved for attempts to override vetoes by Democratic Gov. Laura Kelly — would allow time for passage of a bill clarifying the 2025-2026 funding picture for school districts serving more than 450,000 students throughout the state. 'Unless they fix that this week, that's an $875 million hole in next year's budget,' said Frank Harwood, deputy commissioner of fiscal and administrative services at the Kansas State Department of Education. He said the Legislature could take advantage of the brief end-of-session window to address a bill triggering collection of 20 mills in property tax for public schools. State law requires every school district levy a 20-mill tax on property in their district to help finance public education. This money didn't stay in the taxing district, but was sent to the state to create the pool of money to fund all districts. 'If this doesn't get dealt with, we're going to be coming back for a special session,' said Sen. Cindy Holscher, a Democrat from Overland Park. Without the property tax levy, the Legislature would have to replace the revenue with an appropriation from the general treasury or reduce funding to public school districts. The Legislature risked running afoul of Kansas Supreme Court decisions in the Gannon case that resulted from a finding the Legislature failed to abide by the Kansas Constitution in terms of funding a suitable education for children. Meanwhile, a second education budget issue emerged regarding the Legislature's decision to designate $1.25 million for public schools and $250,000 to private schools for CPR training and to acquire defibrillator or AED equipment. The appropriation, inspired by survival of an Emporia teenager who suffered cardiac arrest, would be drawn from an anticipated increase in base-aid school funding. This category of K-12 funding was adjusted annually based on changes in the Midwest version of the consumer price index for urban consumers or CPI-U. Leah Fliter, assistant executive director of the Kansas Association of School Boards, said CPI-U funding was to be directed to public education, but the state budget presented to the governor directed a portion to private schools. Fliter said the school board association wasn't opposed to state spending for training or equipment to address cardiac emergencies in private schools, but suggested lawmakers ought to select a funding source other than CPI-U aid for public education. 'We are very concerned about that taking of CPI funding for AEDs,' she said. Harwood, the deputy commissioner at the state Department of Education, said questions had been raised about constitutionality of the $250,000 appropriation to private schools. 'Because most of the private schools are parochial, it may actually be a violation of the Constitution because state aid can't go to parochial schools,' Harwood said. The Legislature scheduled work sessions Thursday and Friday in anticipation the governor would issue vetoes. As of Tuesday, Kelly had vetoed 10 bills approved by the GOP-controlled Legislature. The governor has been working through the state budget bill and could make line-item vetoes.
Yahoo
26-02-2025
- Business
- Yahoo
How to find the value of a U.S. savings bond
Issued by the U.S. Treasury, savings bonds are relatively safe, long-term investments that mature 30 years after the original purchase date. For most of us, 30 years is a long time to hold a single investment. The value of your investment can also change considerably during that time. So if you're wondering what your savings bond is worth, there are simple methods for calculating the value; the one you use will depend on the type of bond you have. Read more: What are bonds, and how do you invest in them? This embedded content is not available in your region. The U.S. Treasury currently issues two types of bonds: Series EE bonds: These bonds earn interest monthly for 30 years. As long as you hold it for at least 20 years, the Treasury guarantees that a Series EE bond will double in value, regardless of the interest rate. Series I bonds: Intended as a hedge against inflation, these bonds also earn interest monthly for 30 years. Unlike Series EE bonds, however, the interest rate on Series I bonds is made up of two parts: A fixed rate, set at the time of purchase and remains the same for the bond's life. A variable rate, adjusted every six months based on inflation, measured by the Consumer Price Index for All Urban Consumers (CPI-U). Read more: I bond vs. high-yield savings account: Which is better for beating inflation? Both types of savings bonds are issued electronically through the official Treasury website. However, you can also get paper versions of I bonds if you use your federal tax refund to purchase them. Note that in the past, the Treasury issued other types of savings bonds, such as Series HH bonds, but has since retired them. These older bonds were originally issued in paper form but are no longer available for new purchases. Read more: Types of U.S. savings bonds and how they work Finding the value of an electronic savings bond is as simple as visiting the U.S. Treasury website: Once on the site, click 'log in,' then click 'next.' Then, enter your account number. You may be prompted to enter a one-time passcode (OTP), which TreasuryDirect will send to your email. If so, enter the code you receive in your email and submit, then do the same with your password. After logging in successfully, you will be in the My Account section. On that page, you will find a section called 'Current Holdings,' which shows the current value of all your holdings, including savings bonds. If you have more than one type of savings bond, you can see the value of each type by clicking the Current Holdings button in the menu at the top of the page. You will then see a separate holdings page, showing the value of your Series EE and Series I bonds. Unlike electronic savings bonds, paper bonds are not tracked via your online account. Since you can't quickly look the values up, you must calculate them manually. Fortunately, there is a paper savings bond calculator on the TreasuryDirect website that lets you quickly calculate the value of paper bonds. This calculator determines the value of a paper bond based on its series, issue date, and denomination. You can also enter the bond's serial number for later reference, though this step is optional. To calculate the value of a paper savings bond: Access the calculator on the TreasuryDirect website. Enter a date for which you'd like to know the bond's value. Enter the type of bond and dollar amount. Enter the serial number (optional, to track the bond later). Enter the issue date (month and year). Click calculate. Read more: How to cash a savings bond Two of the biggest factors affecting bond values are interest accrual and the bond's value doubling if you own Series EE bonds. Interest can be a big factor, particularly because savings bonds can earn compounding interest, where you can earn interest on top of the interest you earned previously. Because Series EE bonds have fixed interest rates and Series I bonds have variable rates, the amount of interest each type earns can vary significantly over 30 years. For instance, if you purchase a Series EE bond with a 2.5% interest rate, you may earn much less than you would with a Series I bond if interest rates increase over time. To illustrate this, we can compare a $1,000 Series EE bond issued in February 2001 to a Series I bond issued in the same month. The current value of the Series I bond as of Feb. 20, 2025, is $4,148.00, while the value of the Series EE bond is just $1,152.00. Series I bonds have a higher interest rate in that period, leading to a much larger increase in value. This can also have a significant impact on a bond's resale value. It is possible to sell savings bonds at any time on the open market. However, if you have Series EE savings bonds with a low interest rate and market interest rates increase, the value of your bond will decrease. This is because it earns less interest than newly-issued bonds. The value of a 30-year bond today depends on several factors, including the issue date, the bond type, and the dollar amount denomination. A $50 savings bond you purchased last year likely hasn't changed much in value. Conversely, a $5,000 bond you purchased 25 years ago may be worth much more than it was when you purchased it. Remember that you can quickly see the value of 30-year electronic bonds by logging into For old paper bonds, use the paper savings bond calculator on the TreasuryDirect website.
