30-Year TIPS Auctions With Real Yield Of 1.093%, To Strong Demand

Summary

  • The after-inflation yield of 1.093% was well below the real yield of 1.235% generated at an October auction of the same term.
  • Indirect buyers – meaning big money investors like foreign central banks – bought a record 82% of the $8 billion offering, indicating strong demand.
  • The inflation breakeven rate came in at 1.96%, below the number for recent auctions of this term.

This auction was greeted with apparent strong demand, with indirect bidders (primarily central banks, pension funds, and hedge funds) purchasing a record 82% of the $8 billion issue.

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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