Summary
- The current real yield of 0.34% would fall below results for the last five 9- to 10-year TIPS auctions.
- At that yield, investors would have to pay a slight premium to par value.
- The current inflation breakeven rate of 1.86% is solidly in the neutral range. This TIPS isn’t cheap versus a nominal Treasury.
I have written on this topic often and in fact it will come up again Sunday in my preview of…