Summary
- Long-term real yields have been declining slightly while short-term yield are rising sharply.
- A yield of 0.88% is very close to this TIPS’ coupon rate of 0.875%. The adjusted price is close to par, when accrued inflation is added in.
- The inflation breakeven rate of 1.84% is attractive — and the reason this auction was greeted with apparent strong demand.
Read my full analysis on 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.
Treasury Inflation-Protected Securities 
Happy I sat this one out. Real yield today .974
Had a weired feeling real yield wasn’t going to be good. Since we are in a rising rate environment I actually expect to see higher real yields coming down the pipeline, otherwise there will be a rise in inflation which is up 1.2% since February.