I did bid at the January 2035 auction.Am I missing something ?
If the following is true:
By historical standards, a real yield of 2.20% is attractive. It is actually quite a bit above the historical real return (1.80%) of 10-year Treasurys from 1928 to 2024.
If historical real return for nominal treasuries is 1.8 and then is 2.2 ....
Then why would you not buy this upcoming 10-year TIPs vs other Fixed Income Options since the Jan Auction will most likely be around 2.1
You could make more with BND in theory but there is a lot more risk.
Is there another treasury option that is better now and likely to exceed the 1.8 average from 1928 to 2024 ?
I am not looking to do a ladder now but definitely would like a place to park some of my Fixed Income that will be there for at least 10 years and this looks like the right option. I realize I must be missing something. It currently is in MM at 4.3 which for real rates is below 2%
And will do so again at the July 2035 auction.
Statistics: Posted by watchnerd — Mon Jan 20, 2025 5:33 pm