10-Year TIPS Reopening Generates Real Yield Of 0.934%, Highest In 7 Years

Summary

  • This was the highest after-inflation yield for any 9-to-10 year TIPS auctioned since January 2011.
  • A yield of 0.934% above inflation is moving the return on a 10-year TIPS back into “more normal” levels after years of yield suppression.
  • The inflation breakeven rate was 2.18%, higher than any recent auction. Inflation expectations are rising.

Read my full analysis on SeekingAlpha.com

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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.
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