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Bill Gross takes advantage of the recent selloff in TIPS (TIP) to add to his holdings, noting...

Bill Gross takes advantage of the recent selloff in TIPS (TIP) to add to his holdings, noting the break-even rate for longer-dated paper has fallen to 2.35% (if inflation comes in above this number, TIPS outperform Treasurys). Yesterday's Treasury auction of TIPS was a mess, with one trader calling the action a "get me out" trade. Gross is getting in.
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Comments (1)
  • Ron Myers
    , contributor
    Comments (256) | Send Message
     
    Well the problem with TIPS is that the number that determines how much interest the bonds pay is determined by the people who pay the interest on the bonds. How anyone could ever buy such a security is beyond me.
    19 Apr 2013, 12:51 PM Reply Like
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