Summary
- While shorter-term real yields have been gradually increasing, the 30-year yield has actually been declining.
- Investors at Thursday’s auction will probably pay a 2% premium over par value because this TIPS currently has a market yield below the coupon rate of 1.00%.
- On the positive side, the current inflation breakeven rate of 2.13% is reasonable and attractive.
Read my full analysis on SeekingAlpha.com
Of course nothing is for sure, as David has said, the treasury could change the way they compute the fixed…