Apr.2024 TIPS are (acc. to WSJ) selling for bid 100.02/ ask 100.04.
The only reasons I can think of for not selling all of my remaining Apr 2024s at a price more than 100 to buy longer maturity TIPS to help complete my ladder is that yields on the longer TIPS could go higher (but they also could go lower), and it's kind of fun selling some each week and seeing what yields I can get on the longer TIPS.
Am I missing something?
Is my understanding correct, that I would get slightly more if I sold my Apr. 2024 TIPS now than if I wait for them to mature?
Ultimately I would like to use the proceeds from my 4/2024 TIPS to buy 7/2034 TIPS when they become available. Or I could buy more 1/34s, but I think I would rather spread my investments out more evenly between rungs.
All this is probably not worth it, given the trivial differences in value between the 4/24 TIPS now vs. at maturity, especially given the additional accounting issues and the amount lost in the bid/ask spread. The difference between what I would get today vs. waiting for the 4/24s to mature would only be a few dollars per $10K, right?
Thoughts?
Statistics: Posted by protagonist — Mon Feb 26, 2024 4:20 pm — Replies 29 — Views 3371