On SeekingAlpha.com: A new 5-year TIPS will auction April 21; is it worth a look?

Summary:

  • CUSIP 912828Q60 looks likely to end up with a negative real yield.
  • Yields for this term of TIPS are down an amazing 68 basis points since December.
  • Even a US Savings I Bond with a fixed rate of 0.1% would outperform this TIPS.

I wrote this for SeekingAlpha.com, please read my analysis there.

I will be posting an updated look here next Thursday morning, probably around 10 a.m.

 

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2 Responses to On SeekingAlpha.com: A new 5-year TIPS will auction April 21; is it worth a look?

  1. Jimbo says:

    I turned my nose up to the last auction of 5 year TIPS back in December. Heck, the FED was going to be raising rates probably 4 times in 2016. Why not just wait until April when surely the YTM will be even better? I’m feeling a lot like Charlie Brown when Lucy would pull away the football at the last minute. Ooooops! Flat on my back, again…

  2. tipswatch says:

    Jimbo, I agree that the declining trend in Treasury yields has been a major disappointment for our style of investing in 2016.

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