- CUSIP 912810RR1 has a coupon rate of 1.00%, but the yield is going to come in much lower, meaning buyers will have to pay a high premium.
- 30-year TIPS are highly volatile. Investors at the original auction in February have seen their investment climb more than 10% in eight months.
- The inflation breakeven rate of 1.77% is attractive, but it has been climbing off deep lows seen earlier this year.
This was a nice investment in February, made a quick 8% on a significant sum. At the worst I would have held 30 years but I thought the 1% coupon was an awesome deal and a nice chance to make a nice short term gain. Better than the stock market. As long as I can predict interest rates I can make some quick cash.
It was a great buy, definitely. Another new issue will be coming up in Feburary; it will be interesting to see where the yield will end up.