4.5-year TIPS auction yield is -0.55%

Tuesday, October 26th, 2010
Categorized as: TIPS

The high yield was -0.55% in the Treasury’s 4.5-year TIPS auction held yesterday. The auction was a reopening of the 5-year TIPS originally issued on April 30. This is the yield TreasuryDirect buyers – who accounted for a mere one-fourth of one percent of the buying – received.

The median yield was -0.65% (half the buyers got that rate or lower) and the low yield was -0.75% (5% of the buyers got that rate).

This is the lowest at-auction TIPS rate ever and pretty much guarantees that the next I bond fixed base rate – to be announced next Monday – will be 0%. And it even makes 0% look like a good deal.

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FDIC Insured Certificates of Deposit can pay 1 or 2% more than savings bonds when held for a similar length of time. See top CD Rates Below:

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