- 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: