Lsbcal
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Yes they are different maturities. What I'm saying is that I would not go longer in treasuries then 5yrs because of the inflation risk and historical return for the risk of extending out in nominal treasuries is not good. With TIPS you do not have that inflation risk so can extend out and capture the longer durations. So I'm comparing what is possible for me to invest in: shorter duration apples or longer duration oranges. Yep, they are different fruits but I need to buy some fruit for my basket . You could choose to buy some 5yr Treasuries and some 20yr TIPS too.I understand your reasoning, its just that you've compared apples to oranges. Five years is a little low on the range of intermediate term and you arent comparing 5 year tips to those.
I thought the last auction of 5 year tips was paying ~.625%?
See Bloomberg for the current rates:
Bloomberg.com: Government Bonds
P.S. The coupon on the 5yr is 0.625 but the real rate today for this is 1.84%.