5-year TIPS reopens at auction with a real yield of -0.209%, lowest in 16 months

Summary

  • The after-inflation yield of -.209% is the lowest since an auction in April 2015.
  • Buyers had to pay a premium, about $103.27 for $101.69 of value, when accrued inflation is added in.
  • The inflation breakeven rate was 1.32%, making this TIPS attractive versus a nominal Treasury.

This auction didn’t carry much interest for me, because I Bonds and short-term bank CDs look more attractive. But demand appeared to be strong, and the TIP ETF is rallying today, indicating a positive reaction to the auction.

Read my full analysis at SeekingAlpha.com

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One Response to 5-year TIPS reopens at auction with a real yield of -0.209%, lowest in 16 months

  1. jim says:

    I would not touch that one with a ten foot pole.

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