Summary
- The after-inflation yield of 0.370% was the highest in two years for any 4- to 5-year TIPS auction.
- Reaction to the auction looks positive, with the TIP ETF rising minutes after the close, indicating higher demand.
- The inflation breakeven rate came in at 1.87%, a bit higher than recent trends. This is another indication of good demand for this issue.
Treasury Inflation-Protected Securities 
Real and nominal yields tend to move together, higher or lower. In the same direction, but not necessarily by the…