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Where to find current TIPS rates?
09-20-2006, 02:30 PM
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#1
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Where to find current TIPS rates?
I'm considering some TIPS, and can look in Treasury Direct to find the coupon on recent auctions. But I expect that the price of TIPS already in circulation varies- is there a website where I can find both the coupon and selling price of "used" TIPS?
Previous threads suggest that a coupon of 2.5% is a rough gauge of when TIPS become a better value than ordinary Treasuries, but your comments are welcome on that part, too.
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Re: Where to find current TIPS rates?
09-20-2006, 02:37 PM
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#2
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Re: Where to find current TIPS rates?
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Re: Where to find current TIPS rates?
09-20-2006, 02:38 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Re: Where to find current TIPS rates?
Here you go: http://www.bloomberg.com/markets/rates/index.html
2.4 to 2.5% depending on the maturity. *Interestingly, the TIPS curve is inverted, too.
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Re: Where to find current TIPS rates?
09-20-2006, 03:10 PM
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#4
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Re: Where to find current TIPS rates?
I'm not a bond person and don't know much about them, but I found this T-bond: http://tinyurl.com/jzpk5
Is this bond available to buy now and is the current yield really 10.894%?
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Re: Where to find current TIPS rates?
09-20-2006, 03:21 PM
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#5
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Full time employment: Posting here.
Join Date: Aug 2005
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Re: Where to find current TIPS rates?
"There are two kinds of economists- those who know they can't predict interest rates, and those who don't know they can't predict interest rates."
Having quoted that, can someone comment on what the real yield on TIPS has been over the previous 10 years, whether you expect it to go up or down, and what will cause it to do so?
Also, how do you set up a TIPS IRA?
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Re: Where to find current TIPS rates?
09-20-2006, 03:43 PM
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#6
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Re: Where to find current TIPS rates?
assuming the TIPS were bought at par and held to maturity, the real yield would be the stated coupon --that's the advantage of TIPS!
Quote:
Is this bond available to buy now and is the current yield really 10.894%?
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do note that it's callable, and it likely will be
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Re: Where to find current TIPS rates?
09-20-2006, 04:49 PM
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#7
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Re: Where to find current TIPS rates?
Quote:
Originally Posted by Gearhead Jim
can someone comment on what the real yield on TIPS has been over the previous 10 years
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It has ranged from about 4% when first issued about 10 years ago to around 1% when Greenspan was having his big liquidity party in 2003.
Quote:
whether you expect it to go up or down, and what will cause it to do so?
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The yield curve is pretty flat from the 5-year to the 20-year, so that tells you that the market doesn't expect much change.* *The real yield is pretty much a function of supply and demand.* *Currently, the real yield is right about the 50-year average for treasuries -- not a bargain, but better than a sharp stick in the eye.
Quote:
Also, how do you set up a TIPS IRA?
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You just pick a broker to be your IRA custodian and buy the bonds in that account.* *I use Vanguard, and they don't charge a fee for bonds purchased via treasury auction if you have a Flagship account with them.
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Re: Where to find current TIPS rates?
09-20-2006, 08:41 PM
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#8
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Full time employment: Posting here.
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Re: Where to find current TIPS rates?
Quote:
Originally Posted by d
do note that it's callable, and it likely will be
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But there are a bunch there which aren't.* Go to screen.yahoo.com/bonds.html,
search for 'Treasury' and 'Coupon range' minumum is 8%.
Seems to good to be true, what gives ?
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Re: Where to find current TIPS rates?
09-20-2006, 08:47 PM
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#9
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Re: Where to find current TIPS rates?
Possibly you are neglecting to amortize a premium to par?
Ha
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Re: Where to find current TIPS rates?
09-21-2006, 08:21 AM
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#10
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Re: Where to find current TIPS rates?
Quote:
Seems to good to be true, what gives ?
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forget the coupon, look at yield to maturity
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Re: Where to find current TIPS rates?
09-21-2006, 09:59 AM
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#11
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Re: Where to find current TIPS rates?
Quote:
Originally Posted by d
forget the coupon, look at yield to maturity
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Yield to Maturity (%): 9.242 on the bond I posted above. How do I buy in?
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No man is free who is not master of himself. --- Epictetus
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Re: Where to find current TIPS rates?
09-21-2006, 10:09 AM
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#12
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Re: Where to find current TIPS rates?
Quote:
Originally Posted by retire@40
Yield to Maturity (%): 9.242 on the bond I posted above.* How do I buy in?
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I looked at your link. The fly in the ointment here is the call. You need to either forget it, or look very carefully at the terms of the call.
For example, if is callable now at par, you would lose an immediate 20% or so. This is not likely to be the case, but it illustrates the problem.
Learn about it, or get a mutual fund.
Ha
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Re: Where to find current TIPS rates?
09-21-2006, 10:23 AM
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#13
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Re: Where to find current TIPS rates?
Quote:
Originally Posted by retire@40
Yield to Maturity (%): 9.242 on the bond I posted above.* How do I buy in?
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Talk to the bond desk at your broker. As others have mentioned, in May 2009, you'll learn what "callable" means.
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Re: Where to find current TIPS rates?
09-21-2006, 03:15 PM
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#14
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Re: Where to find current TIPS rates?
Quote:
Originally Posted by retire@40
Yield to Maturity (%): 9.242 on the bond I posted above. How do I buy in?
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YTM doesn't mean anything on a bond like that. Look at the yield to call (YTC) or Yield to Worst (YTW)
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Re: Where to find current TIPS rates?
09-21-2006, 07:04 PM
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#15
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Re: Where to find current TIPS rates?
Those last few points clear things up. Thanks.
I guess the problem is that whomever designed the Yahoo Bond Center forgot to include some vital stats such as the call date and the yield-to-call. I won't be bookmarking that site to use for a bond screener.
Now I know why it was too good to be true.
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No man is free who is not master of himself. --- Epictetus
Enjoy Yourself (It's Later Than You Think). --- Guy Lombardo
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Re: Where to find current TIPS rates?
09-22-2006, 02:26 PM
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#16
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Re: Where to find current TIPS rates?
Quote:
Now I know why it was too good to be true
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... as it always is in the capital markets ... and in most other aspects of life!
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