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Posted by A. Bolmarcich on November 27, 2007, 11:19 am
> What is the feeling about inflation-protected security funds at this
> time? Good investment? Better than Treasury bond funds?
Looking at the Daily Treasury Real Yield Curve Rates web page
http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/real_yield.shtml
and the link on that page to Historical Data, the yield of 10-year TIPS
of 1.45% on 11/26/07 was near its historical low of 1.40% on 03/25/04.
TIPS are not as good of an investment as they were at the beginning of
this month when their yields were higher and prices were lower.
Looking at the Daily Treasury Yield Curve Rates web page
http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/yield.shtml
the yield of 10-year Treausry Notes was 3.83% on 11/26/07. Whether they
are a better investment than TIPS depends on whether the future CPI-U
adjustments to TIPS overcome the 2.38% difference in the yield.
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