Summary
- A new 5-year Treasury Inflation-Protected Security — CUSIP 912828ZJ2 — will be created at auction Thursday.
- This TIPS looks likely to get a real yield to maturity in the range of -0.20% to -0.30%, but a firm prediction is impossible.
- Reaction? It’s not an ugly investment idea, but I Bonds are clearly the better investment for your first $10,000.
This new 5-year TIPS should attract some investor interest, despite deflationary fears in the short term. A massive explosion of Federal Reserve stimulus and U.S. government deficit spending is being used to stabilize the financial system, and at least so far, it is working. The S&P 500 index is up about 22% since hitting a low of about 2,235 on March 23.
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Treasury Inflation-Protected Securities 
This is a personal decision and depends on your other investment options. If you think inflation will continue to be…