This Week’s 5-Year TIPS Reopening Will Reset The Market


  • Expect volatility in the Treasury market this week because the Federal Reserve’s Open Market Committee will issue a statement Wednesday, one day before the auction.
  • At this point, CUSIP 128286N5 is heading toward a real yield of about 0.35%, 78 basis points below a similar auction in December. Buyers will be paying a premium price.
  • A very low inflation breakeven rate of about 1.48% should bring strong market demand for Thursday’s auction.

The U.S. Treasury on Thursday will reopen CUSIP 9128286N5, auctioning $15 billion of a 4-year, 10-month Treasury Inflation-Protected Security. This is an especially interesting auction because it follows six months of rather dramatic yield declines.

Read my full analysis on


About Tipswatch

Author of 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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1 Response to This Week’s 5-Year TIPS Reopening Will Reset The Market

  1. Betti giles says:

    Such an interesting article. When l was young my grandma recommended my spouse and l buy we bonds when we could for emergencies.
    Some of thise few bonds we still yielding four
    Percent. We don’t understand the l bonds well but with your article we have learned more and will reread it a few time. Look forward to reading more articles

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