10-Year TIPS reopening auctions with a real yield of 0.275%

  • The after-inflation yield was the lowest for any 9- to 10-year TIPS in more than a year.
  • This TIPS has a coupon rate of 0.625%, so buyers paid an adjusted price of about $103.53 for $100 of par value.
  • The 10-year inflation breakeven rate came in at 1.56% – pretty attractive for a 10-year TIPS.

The yield for CUSIP 912828N71 ended up being more than 10 basis points higher than where this TIPS was trading two days ago. So buyers got a higher yield and Treasury got to sell a 9- to 10-year TIPS at the lowest yield in more than a year. Everyone happy?

Read my analysis at SeekingAlpha.com

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One Response to 10-Year TIPS reopening auctions with a real yield of 0.275%

  1. joe says:

    that’s a lousy real yield. Since February inflation has been half of one percent. So in a year you would get .775%. Pretty terrible unless inflation explodes

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