Summary
- CUSIP 912810RR1 is going to be pricey and unattractive.
- Federal Reserve didn’t do investors any favors by backing off from rate increases.
- Definitely avoid buying this TIPS in a taxable account; it will be cash flow negative.
I posted an analysis of this reopening on SeekingAlpha.com, read that here.
You can see all my SeekingAlpha posts on this page.
It all depends on the spread. My gold coins are up 30% this year. I think at some point we will see the inflation from all the money printing. I don’t trust nominal bonds. I know some people do a 50 50 split. I did some money since I just sold my 30 year TIPS from February, a very nice trade.
maybe years in the future people will say who in their right mind would have not bought this tips 30 year reopening
It’s possible, especially if US Treasury yields drop below zero, as is happening in Europe right now. But then I’d expect inflation to be very close to zero, so a nominal 30-year Treasury could be the better investment (now yielding 2.43%)