5-Year TIPS Reopening Gets Real Yield Of 1.129%, Highest In Nearly 10 Years

Summary

  • You have to go back to April 2009 to find a 4- to 5-year TIPS auction with a higher real yield.
  • The inflation breakeven rate came in at 1.51%, very low by recent trends and a favorable indicator for investors.
  • At one point just after the auction closed, this 5-year TIPS was trading with a higher real yield than comparable 10-, 20- and 30-year TIPS.

Read my full analysis on Seeking Alpha.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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