10-year TIPS will reopen at auction March 23; will yield be high enough to be attractive?

Summary

  • A week out, CUSIP 912828V49 is trading with a real yield to maturity of 0.48%.
  • Its inflation-breakeven rate is 2.04%, right in the mid-range of inflation expectations since 2009.
  • Is it a buy? Maybe not at the current yield, but watch for volatility next week.

Read my full analysis at SeekingAlpha.com

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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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