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

Posted on January 18, 2018 by Tipswatch

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

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.

View all posts by Tipswatch →

This entry was posted in Investing in TIPS. Bookmark the permalink.

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

Ambrose Bierce says:

February 2, 2018 at 1:22 pm

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

Reply
jim says:

January 20, 2018 at 1:08 pm

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.

Reply