The US Treasury is auctioning off 30 year TIPS on Thursday. The expected yield when I put my order in is 2.668% over the life of the bond which is the higher it’s been decades. If you want to read a good write up, head over to TipsWatch.com for a debrief.
I haven’t been buying Treasuries for a while now but I decided to get back in the game this week. I strongly feel that inflation will spike over the long term. We have too many issues including $37 trillion in debt, 50+ million baby boomers retiring over the next few years and higher demand on goods and services during a tariff war.
I only put in an order for a small amount. The minimum is $1000 and I did a few thousand as I am building a TIPS ladder and plan on buying more when interest rates spike.
The main concern I have though is the manipulation of actual inflation reports. We’ve seen the current administration fire the head of BLS because the admin didn’t like the negative numbers so something similar may happen to reported inflation numbers but over the long term, you can’t sweep a pile of trash under a rug because it will show regardless.
The cutoff time is usually Wednesday at many brokers so if you plan on buying, get your order in sooner than later.
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