As U.S. Debt Rises, Treasury Shakes Up TIPS Auction Schedule

Posted on April 21, 2019 by Tipswatch

Summary

  • The new schedule adds a second new 5-year TIPS to the 2019 auction lineup. One 30-year TIPS reopening has been removed.
  • The new lineup allows the Treasury to offer larger auctions, more frequently, meeting its needs to raise funds to meet higher deficits.
  • It’s a good move for small-scale investors, because the 5-year TIPS is currently the most attractive offering.

While preparing a chart of upcoming auctions of Treasury Inflation-Protected Securities a few weeks ago, I noticed something odd: The Treasury had scheduled a 5-year TIPS reopening in June, in the spot normally reserved for a 30-year TIPS reopening.

Was it a typo? Or was the schedule changing? An alert reader also noticed this change and pointed to this wording on an obscure page of TreasuryDirect:

We auction 5-year TIPS in April, June, October, and December; 10-year TIPS in January, March, May, July, September, and November; and 30-year TIPS in February, and August.

Read my full analysis on 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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