Investing - Theory, News & General • Re: Could the Treasury stop Issuing TIPS to save money?
Considering the recent 30-year bond auction going off at 5.22%, it seems to me that the borrowing cost the Treasury is incurring is increasing. While the guaranteed portion of TIPS is considerably less than their counterpart of similar duration, could the Treasury stop issuing them?
Yes they could can stop issuing 30-year TIPS and has in the past. But will they? Who knows.
Would it save money by doing so, especially considering the possibility of higher inflation down the line eroding the value of nominal bonds (and making it easier for Treasury to repay its debt)?
Lots of discussion over that question. Here's an example https://home.treasury.gov/system/files/ ... Q22023.pdf that concludes that Treasury actually reduces their costs by issuing TIPS.
Statistics: Posted by IDpilot — Sun Aug 16, 2026 8:38 am
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