New 10year TIP January 2014

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countdown
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New 10year TIP January 2014

Post by countdown »

Anyone considering the 10-year TIP issuing this month?
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elgob.bogle
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Re: New 10year TIP January 2014

Post by elgob.bogle »

Yes - I placed my order thru Vanguard Brokerage Service this morning for the January 23rd 10-Year TIPS Treasury Auction

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abuss368
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Re: New 10year TIP January 2014

Post by abuss368 »

If I move back into TIPS, I would consider the Vanguard Intermediate Term Fund.
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Cash
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Re: New 10year TIP January 2014

Post by Cash »

I'm planning to place an order, but can't seem to do so online at Fidelity (where one 401(k) is) at the moment. Does anyone know if this delay is normal, or do I need to call in?
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Re: New 10year TIP January 2014

Post by Browser »

What coupon rate are you looking for?
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Ice-9
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Re: New 10year TIP January 2014

Post by Ice-9 »

Cash wrote:I'm planning to place an order, but can't seem to do so online at Fidelity (where one 401(k) is) at the moment. Does anyone know if this delay is normal, or do I need to call in?
Are you saying you're not seeing the bond offered, or that an error occurs when you try to place the order? I haven't placed the order yet, but the 10-yr shows up for me when I click Trade Fixed Income --> Search Inventory --> US Treasury --> TIPS (Auction)
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Re: New 10year TIP January 2014

Post by Cash »

Ice-9 wrote:
Cash wrote:I'm planning to place an order, but can't seem to do so online at Fidelity (where one 401(k) is) at the moment. Does anyone know if this delay is normal, or do I need to call in?
Are you saying you're not seeing the bond offered, or that an error occurs when you try to place the order? I haven't placed the order yet, but the 10-yr shows up for me when I click Trade Fixed Income --> Search Inventory --> US Treasury --> TIPS (Auction)
Ha, in the hour since I last looked, it has appeared.
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Re: New 10year TIP January 2014

Post by Cash »

Well, when I click to place the order, I get a "Trade Message" that says, "the cusip entered has a short period of time before maturity and the quantity entered would result in a negative yield for this cusip. Please select Back from your browser's toolbar to use a different CUSIP or select Search Inventory to find another security."

Looks like I'm going to have to call it in.
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Tortuga
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Re: New 10year TIP January 2014

Post by Tortuga »

Just placed an order for the 10 year TIP at Vanguard.
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Re: New 10year TIP January 2014

Post by niceguy7376 »

I dont have enough knowledge or finances to buy these but do have some questions since I only have VG total bond market and Ibonds(first purchase in Dec 2013 till now.
I noticed that each bond is 1K and that the max i can place is for 5000 bonds. What are the rates that we can get on these? Please do understand my very limited knowledge on the TIPS/BONDS side.
Last edited by niceguy7376 on Thu Jan 16, 2014 5:32 pm, edited 1 time in total.
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Ice-9
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Re: New 10year TIP January 2014

Post by Ice-9 »

niceguy7376 wrote:I dont have enough knowledge or finances to buy these but do have some questions since I only have total bonds and Ibonds till now.
I noticed that each bond is 1K and that the max i can place is for 5000 bonds. What are the rates that we can get on these? Please do understand my very limited knowledge on the TIPS/BONDS side.
You can see what they've been closing at each day this month on the Treasury's website: Daily Treasury Real Yield Curve Rates

There's still a week before the auction, but I wouldn't expect it to be too far off from the 0.62% real yield that the site lists for the last two days. That's better than the 0.20% you can get with current I-Bonds, but of course we're talking a 10-yr bond subject to market moves if you don't hold to maturity versus a non-marketable savings bond that has no penalty after five years. Generally, folks prefer to hold TIPS (individual or in a fund) in atax advantaged account whereas I-Bonds are (usually) tax-deferred until redemption in a taxable account at Treasury Direct.
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Re: New 10year TIP January 2014

Post by Cash »

Cash wrote:Well, when I click to place the order, I get a "Trade Message" that says, "the cusip entered has a short period of time before maturity and the quantity entered would result in a negative yield for this cusip. Please select Back from your browser's toolbar to use a different CUSIP or select Search Inventory to find another security."

Looks like I'm going to have to call it in.
I received a secure message confirming that I had to call the order in, but I was just now able to place it online. Go figure!
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Doc
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Re: New 10year TIP January 2014

Post by Doc »

Cash wrote:
Cash wrote:Well, when I click to place the order, I get a "Trade Message" that says, "the cusip entered has a short period of time before maturity and the quantity entered would result in a negative yield for this cusip. Please select Back from your browser's toolbar to use a different CUSIP or select Search Inventory to find another security."

Looks like I'm going to have to call it in.
I received a secure message confirming that I had to call the order in, but I was just now able to place it online. Go figure!
I figure that you are using Vanguard Brokerage Service.
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Re: New 10year TIP January 2014

Post by Cash »

Doc wrote:
Cash wrote:
Cash wrote:Well, when I click to place the order, I get a "Trade Message" that says, "the cusip entered has a short period of time before maturity and the quantity entered would result in a negative yield for this cusip. Please select Back from your browser's toolbar to use a different CUSIP or select Search Inventory to find another security."

Looks like I'm going to have to call it in.
I received a secure message confirming that I had to call the order in, but I was just now able to place it online. Go figure!
I figure that you are using Vanguard Brokerage Service.
Nope, a Fidelity 401(k) for this one.
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dmcmahon
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Re: New 10year TIP January 2014

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Cash wrote:Well, when I click to place the order, I get a "Trade Message" that says, "the cusip entered has a short period of time before maturity and the quantity entered would result in a negative yield for this cusip. Please select Back from your browser's toolbar to use a different CUSIP or select Search Inventory to find another security."

Looks like I'm going to have to call it in.
Yep peers, that's what I did. The message is due to some calculation that implies a negative yield. The message is very misleading.
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Kevin M
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Re: New 10year TIP January 2014

Post by Kevin M »

No, TIPS yields are still too low.

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mt
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Re: New 10year TIP January 2014

Post by mt »

I placed an order in my 401(k) because I have a bunch of cash that I needed to do something with and this is what my AA is telling me to do. I did not use all the cash in hopes that the July auction will have somewhat better rates.
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Re: New 10year TIP January 2014

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Deleted.
Last edited by beardsworth on Sun Jan 19, 2014 7:58 am, edited 1 time in total.
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nisiprius
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Re: New 10year TIP January 2014

Post by nisiprius »

I think so. I have some that are maturing this year on 1/15 and 7/15 and, yeah, I think I'm going to roll them over--and probably not wait for 7/15, just do it all at once.
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Re: New 10year TIP January 2014

Post by Doc »

nisiprius wrote:I think so. I have some that are maturing this year on 1/15 and 7/15 and, yeah, I think I'm going to roll them over--and probably not wait for 7/15, just do it all at once.
Putting them both into the five on April 15th might also be an option. The cost would be minimal unless your are holding them at Treasury Direct which had higher transaction cost to sell in the past.
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Re: New 10year TIP January 2014

Post by Cash »

Results are out

If I'm reading this correctly, yield came in at .661%, which is a bit higher than I expected based on the trend over the past week. Not as good as the .75% at the beginning of the month, but better than the recent .57%.
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