New 10-Year TIPS Auctions With A Real Yield Of 0.548%, Highest In 2 Years

Summary

  • The real yield of 0.548% was the highest for any 9- to 10-year TIPS auction since January 2016.
  • The coupon rate was set at 0.500%, the first time in history that any 10-year TIPS received this coupon rate.
  • The inflation breakeven rate climbed to 2.06%, highest in more than three years.

Read my full analysis on SeekingAlpha.com

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2 Responses to New 10-Year TIPS Auctions With A Real Yield Of 0.548%, Highest In 2 Years

  1. jim says:

    This was an interesting auction. I actually 30 year TIPS that had appreciated due to the inversion of the yield curve and bought these 10 year TIPS at auction. I’ll buy 30 year tips if the real yield goes up.

  2. Wasn’t the volume pathetic? And at about 95 bps. Might we expect some real discounts if rates continue to rise and they reissue with the same yield? I love a discount

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