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Treasury Is Committed to Issuing TIPS Print E-mail
Written by TFB   
Last Updated on August 05, 2009

The Treasury Department included these paragraphs about TIPS in their August 2009 Quarterly Refunding Statement (emphasis added):

Treasury is committed to issuing TIPS in a regular and predictable manner across the yield curve. These securities are an important part of our overall debt management strategy, and market participants can expect issuance to gradually increase in FY 2010.

Additionally, to potentially improve liquidity in the TIPS program and better capture the premium associated with inflation protection, Treasury will consider replacing 20-year TIPS with 30-year TIPS.

Any potential changes to the TIPS program will be announced at the November 2009 refunding.

FY 2010 starts on October 1, 2009. No changes to the TIPS auction schedule yet. The auctions in October 2009 will still be for a 5-year reopening and a 10-year reopening. Stay tuned for further announcements until November 2009.


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