- Coupon rate was set at 0.125%, the lowest the Treasury will go.
- Buyers had to pay a premium, an adjusted price of about $100.98 for $100 of par value.
- The inflation breakeven rate came in at 1.54%, historically low and attractive against a nominal Treasury.
The yield ended up being lower than I expected, and it ran counter to a slight decline in the TIP ETF Thursday morning. I was expecting somewhere around 0.14%, so today’s auction indicates there is still strong demand for Treasury Inflation-Protected Securities.