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

Posted on August 23, 2018 by Tipswatch

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.

Read my full analysis on SeekingAlpha.com

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

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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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