10-Year TIPS Auctions At 1.109%, Highest In Nearly 8 Years

Summary

  • The last time a 9- to 10-year TIPS auctioned with a real yield above 1.00% was on January 20, 2011, at 1.17%.
  • Buyers got this TIPS at a substantial discount because the real yield was well above the coupon rate of 0.750%.
  • The inflation breakeven rate came in at 1.99%, lower than in recent auctions. Another good sign for investors.

Read my full analysis on SeekingAlpha.com

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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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