Wednesday’s 10-Year TIPS Auction Still Looks Attractive

Summary

  • The real (after-inflation) yield looks likely to top 1.00% for the first time for any 9- to 10-year TIPS auction since January 2011.
  • The inflation breakeven rate is currently a reasonable 2.02% and should attract strong demand at this auction.
  • Buy it or not? Well, do you think interest rates will continue to rise, or have peaked? A tempting 5-year reopening is coming in December.

Read my full analysis on SeekingAlpha.com

10-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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