Reissue of 30-year TIPS auctions at record-low 0.999%

The U.S Treasury has announced the results of its reissue of a 30-year  Treasury Inflation-Protected Security, CUSIP 912810QP6, which drew a yield-to-maturity of 0.999%. In addition, the principal of this TIPS increases with the rate of inflation until maturity.

That was a bit lower than the 1.038% experts were expecting.

The previous record low of 1.744% was set in the last reissue of CUSIP 912810QP6 in June.

Dow Jones called the auction demand ‘impressive’:

The $7 billion offering attracted the strongest demand in the history of 30-year Treasurys Inflation Protected Securities, drawing a bid-to-cover ratio of 3.06, compared to a lifetime average of 2.40. The government was able to sell this debt handing out a yield of just 0.999%–the lowest ever.

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