Why is TIP down $1 today? Is it a good time to buy?
iShares Barclays TIPS Bond Fund (TIP) Why TIP Could Be On The Move: The government is scheduled to auction off its quarterly issue of 10-year TIPS at 1 pm EST. The auction, which is projected to be for $8.2 billion in TIPS, is slightly less than the first quarter offering of about $10 billion. That auction was well subscribed, with investors submitting bids worth 2.65 times the amount on offer. TIP could be in focus if the auction does not attract the same level of demand, suggesting that investors are not very concerned about inflation. On the other hand, if the bonds are in high demand it could signal that inflation is once again on investors’ minds helping to boost the demand for TIP. For other ETFs that can help to protect against inflation see Beyond TIP: 10 ETFs To Protect Against Inflation.