2017 Economic Calendar
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30-Yr TIPS Announcement  
 
Description of Offering
Offering Amount$5.0 B 
CUSIP Number912810RW0 
Auction DateJune 22, 2017 
Issue [Settlement] DateJune 30, 2017 
Maturity DateFebruary 15, 2047 
Min Bid Amount$100 
Noncompetitive Bids12:00 Noon ET 
Competitive Bids1:00 p.m. ET 
Definition
The Treasury sells inflation-indexed securities, also known as TIPS, at regularly scheduled auctions. Competitive bids at these single-price auctions determine the interest rate paid on each issue, which remains fixed. Note the interest rate cannot be negative with the Treasury setting a minimum of 0.125 percent. A group of securities dealers, known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold the bills, resell the bills to their clients or trade them with other securities firms. Typically, the New York Fed approves about 20 securities firms to be primary dealers but that number dropped sharply during the 2008 financial crisis as some were merged into other firms or went bankrupt. The Fed has been rebuilding that number regularly and the latest list can be found here. The Treasury usually announces the amount, date and time of the 30-year TIPS auction in mid-February. The Treasury has not been consistent with reopening dates with recent reopening announcements ranging from mid-August to mid-October. In original issues and reopenings, 30-year TIPS are usually auctioned in the last week of the month. These TIPS are issued (settled) on the last business day of the month. These TIPS, however, have a mid-month maturity date. Consequently, investors who purchase these securities at auction are required to pay the interest accrued between the 15th of the month and the issue date.  Why Investors Care
 

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