Who's buying 5-year TIPS this month ?

[JohnEyles]

I'm tempted, part of my grand scheme to put 10% or so of my egg
into a ladder of 5yr TIPS. But the YTM's are SO darn low, though
they've been creeping upwards (from 2% flat) for the last week or
two. I don't quite understand the YTMs at Bloomberg (2.13%
on price of 100.30, as I type). When I use the popup calculator
at http://www.moneychimp.com/articles/finworks/fmbondytm.htm
I get abut 2.3% typing in the same numbers.

 

[brewer12345]

Pass. Not enough yield. I will stick with ISM/OSM.

 

[FIRE'd@51]

I don't quite understand the YTMs at Bloomberg (2.13%
on price of 100.30, as I type). When I use the popup calculator
at http://www.moneychimp.com/articles/finworks/fmbondytm.htm
I get abut 2.3% typing in the same numbers.

Remember, TIPS prices are quoted in 32nds, so 100-30 is 100.94, not 100.30. If you use 100.94 you will get 2.13% YTM.

 

[JohnEyles]

Remember, TIPS prices are quoted in 32nds, so 100-30 is 100.94, not 100.30. If you use 100.94 you will get 2.13% YTM.

I can't remember, because I never knew. Duh. Thanks !