Coming January 19: Treasury Will Auction A New 10-Year TIPS, One Worth Watching

Posted on January 12, 2017 by

Summary

  • A week away, the yield to maturity is estimated at 0.39%, not awful but also not really attractive.
  • The inflation breakeven rate of 1.99% indicates TIPS are no longer ‘cheap’ versus nominal Treasurys.
  • Looking ahead: 5 more auctions of this maturity in 2017.

This is a particularly interesting auction because it is the first new-issue TIPS since the election of Donald Trump on November 8 set off turmoil in the Treasury market.

Read my preview and analysis on SeekingAlpha.com

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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