10-year TIPS auctions at -0.630%, well above record low

The U.S. Treasury announced today that its auction of a new 10-year Treasury Inflation-Protected Security went off with a coupon rate of 0.125% and a yield to maturity of -0.630%, well above the record-low yield of -0.750% for 9-year, 10-month reissue last year in September.

This is the second 10-year TIPS auction in a row that failed to set a record low, a good trend for TIPS buyers who have been seeing yields negative to inflation for nearly two years, well up the maturity ladder.

Read the Treasury’s announcement for CUSIP 912828UH1

Because buyers are getting a yield 0.755% below the coupon rate, they will be paying up for this issue, about $107.50 for every $100 of value.

Unknown's avatar

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
This entry was posted in Investing in TIPS. Bookmark the permalink.