Up next: A particularly ugly reopening auction for a 30-year TIPS

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.

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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3 Responses to Up next: A particularly ugly reopening auction for a 30-year TIPS

  1. jim's avatar jim says:

    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.

  2. jim's avatar jim says:

    maybe years in the future people will say who in their right mind would have not bought this tips 30 year reopening

    • Tipswatch's avatar tipswatch says:

      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%)

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