10-Year TIPS Reopening Gets Real Yield Of 0.174%, Lowest In 3 Years

Summary

  • Real yields are near Treasury-estimate lows for 2019, but have popped slightly higher in recent weeks.
  • Today’s auction yield of 0.174% meant that investors had to pay a premium to get a 0.250% after-inflation coupon rate.
  • The inflation breakeven rate came in at 1.60%, a three-year low. A number this low had to spur interest from big-money investors.

I’d suggest steering away from five-year TIPS yielding lower than 0.40% and 10-year TIPS below 0.65%. It may be a while before we see yields that high again.

Read my full analysis on SeekingAlpha.com

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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