Washington (May 10, 2004) -- In an effort to increase their appeal to investors, the U.S. Treasury announced it is issuing two new sets of Treasury Inflation-Protected Securities: one for five years and the other for 20. Previously, there were only 10-year TIPS.

Each security will be auctioned semiannually. The five-year TIPS will be auctioned on an April/October cycle and the 20-year TIPS will be on a January/July cycle.

The first issues of these securities in July and October of this year will have an initial maturity that is a half year longer than usual. Accordingly, the 20-year TIPS that will be issued in July 2004 will have an initial maturity of 20-½ years. Similarly, the 5-year TIPS that will be issued in October 2004 will have an initial maturity of 5-½ years.

--WebCPA staff

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