Summary
- The after-inflation yield was the highest at auction for this term since January 2016, breaking a string of 10 auctions under 0.50%.
- The inflation breakeven rate came in at 1.84%, a reasonable number but well off the lows of early summer.
- Market reaction to the auction has been muted, with the TIP ETF barely budging after the 1 p.m. auction close.
Read my full analysis on SeekingAlpha.com.
Treasury Inflation-Protected Securities 
I’m mystified by an article in today’s WSJ about how investors “plowed money into” TIP and its analogues this week — $1.2B, third highest on record and highest since one year previously according to BoA. The chart I track is at http://stockcharts.com/h-sc/ui?s=TIP&p=W&b=5&g=0&id=p51794316612 and the trading volume looks very mediocre, nor was the price move very impressive. TLT did about the same (just substitute TLT for TIP in the upper left corner and refresh). What am I missing?
The TIP ETF was up about 0.1% for the week — no one could call that a major move. A lot of these inflow stories seem to be automatically produced, such as this one: http://www.nasdaq.com/article/tip-large-inflows-detected-at-etf-cm881478 . That story has the exact wording as other inflow stories, it was written by a robot.