Quick check-in on today’s 10-year TIPS reopening

The TIPS market is looking fairly sedate this morning, so we should be able to get a pretty good idea of how today’s reopening of CUSIP 912828WU0 will go. This will be a 9-year, 10-month TIPS with a coupon rate of 0.125%, plus inflation.

  • Bloomberg’s Current Yields page is showing this TIPS – which trades on the secondary market – with a yield to maturity of 0.55% and a price just short of $96 per $100 of value. This TIPS will go at a discount because its auctioned-determined yield will be well above the coupon rate.
  • The TIP ETF is currently (11:40 a.m.) trading at $111.97, down very slightly from yesterday’s close.
  • The Wall Street Journal’s Closing Prices page shows this TIPS – which matures in July 2024 ended yesterday with a yield of 0.531%.

Based on this data, I’d say the yield should come in right around 0.55%, and I think that is attractive enough for a small investment. I placed my order a few minutes ago.

Non-competitive bids need to be placed before noon.

I’ll be back after 1 p.m. with the auction results.

Advertisements
This entry was posted in Investing in TIPS. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s