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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.
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
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!
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