The Treasury sells $7B in 30-year TIPS at 1.768% (.pdf), with solid interest in the first of a...


The Treasury sells $7B in 30-year TIPS at 1.768% (.pdf), with solid interest in the first of a week of auctions. Bid-to-cover ratio of 2.78, vs. a prior 2.23; indirect bidders take 38.9%, vs. a prior 42.4%. Direct bidders take 28%, vs. 6.4% in February. Treasurys little changed; 30-year yield still +0.02 to 3.68%; 10-year -0.01 to 2.61%.

Comments (5)
  • Wyatt Junker
    , contributor
    Comments (4498) | Send Message
     
    Nighty night now. Sleep tight. Uncle Ben will be here for you when you wake up.
    23 Aug 2010, 01:12 PM Reply Like
  • tunaman4u2
    , contributor
    Comments (3475) | Send Message
     
    PONZI !
    23 Aug 2010, 01:25 PM Reply Like
  • logicalman
    , contributor
    Comments (757) | Send Message
     
    i presume the 1.768% yield shd. be on 2 or 3 yr. treasuries not 30yr!!!
    23 Aug 2010, 02:01 PM Reply Like
  • Steve Hamlin
    , contributor
    Comments (6) | Send Message
     
    No, it's 1.768% on 30 year TIPS - Treasury Inflation Protected Securities.

     

    30 year Treasuries are currently yielding 3.55%, but that is nominal, and you need to worry about inflation.

     

    30 year TIPS yielded 1.768%, but that is real, and you'll earn that amount on top of CPI inflation.

     

    The comparison implies that expected average CPI inflation over the next 30 years is 1.782% (3.55% - 1.768%).
    24 Aug 2010, 11:27 AM Reply Like
  • logicalman
    , contributor
    Comments (757) | Send Message
     
    thank's.................. we all have things to learn, even after more than 25 yrs. of successful investing ( on the long run, of course )!!!
    2 Sep 2010, 03:39 PM Reply Like
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