30-Year TIPS Reopening Auctions With A Real Yield Of 0.666%, Lowest In More Than 3 Years

Summary

  • Buyers had a pay a big premium for the 1.00% coupon rate, about $110.67 for $101.65 of value, when accrued inflation is added in.
  • The inflation breakeven rate came in at about 1.83%, 31 basis points higher than at the originating auction in February.
  • The trend in breakeven rates indicates rising expectations for inflation.

Read my full analysis at SeekingAlpha.com

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About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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1 Response to 30-Year TIPS Reopening Auctions With A Real Yield Of 0.666%, Lowest In More Than 3 Years

  1. joe says:

    Not a great rate, but who know, maybe in the future it will turn out to be a good deal. I’m not a buyer of this one.

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