New 10-Year TIPS Gets Real Yield Of 0.036%, Lowest Since 2013

Summary

  • Investors had to pay a big premium for this TIPS, about $100.86 for $99.97 of value, after the January inflation adjustment.
  • The inflation breakeven rate came in at 1.68%, slightly lower than looked likely last week. Still, inflation fears seem to be rising.
  • Real yields could continue falling, but an investment at real yields this low is not attractive.

The U.S. Treasury’s auction Thursday of $14 billion in a new 10-year Treasury Inflation-Protected Security generated a real yield to maturity of just 0.036%, the lowest yield on an auction of this term since May 2013.

Read my full analysis on SeekingAlpha.com

10-year TIPS auction history

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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1 Response to New 10-Year TIPS Gets Real Yield Of 0.036%, Lowest Since 2013

  1. ahn0185 says:

    bona fide
    Thanks

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