10 Year TIPS Auction Next Week

For those interested in adding some Treasury Inflation Protected Securities (TIPS) to their retirement income plan, there will be a Treasury auction of TIPS with a ten-year maturity in Monday, October 5. The actual maturity is 9 years and 9 months. The interest rate (coupon) will be 1.875%. Remember that this is the permanent part of the interest. The inflation adjustments will be added to the redemption value of the securities on January 15 and July 15 of each year until maturity.

The last ten-year TIPS auction was in July. The interest rate at issue was 1.875% and the auction results produced a yield of 1.920%.

Here is the actual TIPS auction announcement from the U.S. Treasury.

There is no time like the present to get yourself educated in the entire TIPS auction program so that you can learn how and when to buy them yourself.