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.
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