- The real yield of 0.567% was in line with where this TIPS was trading Thursday morning. No surprise, and the auction appears to have been met with strong demand.
- Buyers had to pay a lofty premium, however, because the real yield fell well below the coupon rate of 0.875% generated at the originating auction in January.
- The inflation breakeven rate came in at 1.73%, the lowest at auction for this term since September 2016.
Because the auctioned yield was well below the coupon rate, investors had to pay a premium price, about $103.54 for about $100.66 of value, after accrued inflation is added in.