- Market turmoil has created incredible volatility, even for mundane investments like U.S. Treasurys.
- Friday’s real yield of 0.04% would have been “attractive,” but it isn’t likely to hold in light of the Federal Reserve’s rate-cutting action Sunday.
- The current 10-year inflation breakeven rate of 0.90% makes this TIPS a much more attractive investment versus a 10-year nominal Treasury. But that could also swing wildly.
In the midst of all this volatility, the Treasury on Thursday will offer $12 billion in a reopening auction of CUSIP 912828Z37, creating a 9-year, 10-month TIPS.