I've been writing about Treasury Inflation-Protected Securities for eight years, and I've always been clear: I'm not a fan of 30-year TIPS. Too long a maturity, too volatile, too much risk, horrible cash flow, too little return.
But Thursday's reopening auction of CUSIP 912810SG4 - creating a 29-year, 6-months TIPS - is a particularly gruesome offering. The Treasury is selling $7 billion of this reopened TIPS, but no one outside of a central bank or pension fund should touch it.
TIPS are Treasury investments that pays a coupon rate well below that of other Treasury