5-Year TIPS Gets Real Yield Of 0.724%, Highest In Nearly 9 Years

Summary

Investors got this reopened TIPS at a discount, because the real yield was higher than the coupon rate of 0.625%.
The inflation breakeven rate came in at 1.99%, slipping 13 basis points since the originating auction in April. This is a positive for investors.
Reaction to the auction looks positive, with the TIP ETF getting a slight bump higher after the auction’s close.

Here’s the nine-year trend in 5-year real yields: