Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Current TIPS rate at auction
Old 06-28-2009, 04:42 PM   #1
Recycles dryer sheets
 
Join Date: Oct 2007
Posts: 332
Current TIPS rate at auction

I am not real clear on TIPS rates. I am thinking of buying some. Can anyone confirm that this page indicates the TIPS auction next week indicates a base rate of 3.3% for 7 year tips?

Recent Note, Bond, and TIPS Auction Results
__________________

__________________
cashflo2u2 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-28-2009, 05:04 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
Bloomberg.com: Government Bonds seems to confirm those rates, but I am skeptical. [Edit per Peter's post below: Ooops, the 7-year listed is not inflation-protected]

See also St. Louis Fed: Series: DFII7, 7-Year Treasury Inflation-Indexed Security, Constant Maturity This chart does show 7-year TIPS, but real yields are much lower than 2%.
__________________

__________________
LOL! is offline   Reply With Quote
Old 06-28-2009, 05:22 PM   #3
Recycles dryer sheets
 
Join Date: Dec 2003
Posts: 447
Are you sure you're looking at the TIPS auction results? The table in the link shows regular and TIPS notes and bonds.

I see 10 year TIPS with a yield of 2.245% priced at 99.411. The Bloomberg TIPS table shows 10 year TIPS yielding 1.83%, but the price for those notes is 102.18. The lower yield reflects the fact that there would be a capital loss if held to maturity.

This doesn't take into account inflation indexing, of course.

Peter
__________________
Peter is offline   Reply With Quote
Old 06-28-2009, 05:48 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by cashflo2u2 View Post
I am not real clear on TIPS rates. I am thinking of buying some. Can anyone confirm that this page indicates the TIPS auction next week indicates a base rate of 3.3% for 7 year tips?

Recent Note, Bond, and TIPS Auction Results
The page you referenced does not list any 7 yr TIPS. In fact, I don't think they were ever issued with 7 yr maturities. Perhaps you're missing the "Type" column which specifies whether they're talking about Treasury Bonds, Notes or TIPS. You're probably reading the row relating to the June 30th, 7 yr Note.
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 06-28-2009, 08:24 PM   #5
Recycles dryer sheets
 
Join Date: Oct 2007
Posts: 332
Me bad. You are correct that lists both notes, bonds and tips and I did not focus the type column. I think tip rates are still too low.
__________________
cashflo2u2 is offline   Reply With Quote
Old 07-01-2009, 07:35 AM   #6
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 352
Is now a sensible time to buy into the Vanguard TIPS fund? What are the factors? Thank you!
__________________
windsurf is offline   Reply With Quote
Old 07-02-2009, 12:58 AM   #7
Recycles dryer sheets
Lawrence of Suburbia's Avatar
 
Join Date: Mar 2009
Location: Newcastle, WA
Posts: 110
Quote:
Originally Posted by windsurf View Post
Is now a sensible time to buy into the Vanguard TIPS fund? What are the factors? Thank you!
It's certainly easier.

I own that one, as well as the TIAA-CREF one in my 403b at work. I've recently fallen under the spell of the writings of Zvi Bodie. Tomorrow it may be the Maharishi Mahesh Yogi, so don't take anything I say too seriously.

Not for all my investments, mind you; maybe 7-8% or so in TIPS.
__________________

__________________
Don't just do something; stand there!

- Jack Bogle
Lawrence of Suburbia is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
TIPS Auction youbet Stock Picking and Market Strategy 10 04-06-2009 10:55 AM
auction of 10-year TIPS next week JohnEyles FIRE and Money 45 07-13-2007 09:30 AM
Up coming TIPS auction ak4195 FIRE and Money 21 11-09-2004 09:58 PM
US Treasury to auction 20-Year TIPS intercst FIRE and Money 0 05-13-2004 09:40 AM
Upcoming TIPS auction wabmester FIRE and Money 16 01-16-2004 07:27 AM

 

 
All times are GMT -6. The time now is 05:23 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.