On a rare Wednesday auction, 30-year TIPS reopening goes off with a real yield of 0.905%

Hmmm… a TIPS auction on a Wednesday? I have to admit, I didn’t see that coming. I have been covering TIPS auctions for 5 1/2 years, and every single one was on a Thursday, unless the Thursday was a federal holiday.

I searched for a reason for the one-day leap forward, but couldn’t find one. Maybe the Treasury wanted to step aside during Great Britain’s Brexit vote. Maybe the Treasury has summer vacation plans. I saw today that Republicans in the US House voted to start their July 4th holiday today. Ah, the life …

At any rate, the Treasury’s auction Wednesday of a reopening of CUSIP 912810RR1 – creating a 29-year, 8-month TIPS – resulted in a real yield to maturity of 0.905%. (Real yield is the yield above inflation.)

I posted an analysis at SeekingAlpha.com, please read it there.

You can read all my recent articles on my profile page.

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