Summary
- A bear market for Treasury Inflation-Protected Securities? Not based on this auction, which generated strong demand.
- The coupon rate of 0.12% fell just below the coupon rate of 0.125%, meaning buyers had to pay a small premium for this TIPS.
- TIPS have been out-performing the overall bond and Treasury markets over the last week. Inflation protection is still ‘in’.
TIPS have been on the move this week, with yields falling and prices rising. It’s a bit of a shock for those predicting a collapse in the Treasury market. And today’s auction was probably a bit of a disappointment for investors expecting a slightly higher yield.
Treasury Inflation-Protected Securities 
Not sure exactly what that is getting at, but I think "originally issued date" is referring to the par value,…