Summary
- The real yield of 1.003% set the coupon rate at 1%, which is favorable for investors.
- The inflation breakeven rate came in at 2.12%, up 28 basis points from a June 2017 auction of a similar term.
- The market reaction has been mild; this TIPS generated weaker demand but the yield was close to estimates.
Absolutely. TIPS are a big-money investment. Non-competitive bids make up a tiny share of auction purchases.