You're basically asking a market timing question.Yes I understand they will converge at some point but if I bought an existing 2029 TIPS now at today's real yields is there any advantage if real yields decrease over the next few weeks so then I just keep the existing TIPS I already purchased but if real yields increase materially higher from here I can sell the existing to buy the new 5 year TIPS which has no inflation accrual and eliminates that potential risk, despite how slight it is perceived to be?You know the yield is going converge at the same spot very soon, right?Any additional BH perspectives on whether to buy one of the existing 2029 TIPS or wait for the to be newly issued 5 year TIPS next week?
Does it make any sense to buy one of the existing 2029 maturing TIPS available now and then see what the new one is yielding once available on the secondary market and potentially either keeping what I bought now or selling it to buy the new issue if the yield is materially higher?
Thanks once again.
Shortly after the auction, the existing 2029s and the newly auctioned 2029s should be yielding the same.
It could swing either way -- to where buying now is better, or buying now is worse.
Nobody knows which way it will go.
Statistics: Posted by watchnerd — Mon Apr 08, 2024 4:27 pm — Replies 21 — Views 1908