• This was an investor-friendly auction: The real yield of 0.68% was much higher than looked likely a week ago.
• The inflation breakeven rate of 0.43% is “out-of-normal” low and seems to be pricing in a dire economic future.
• Treasury markets are in flux, with asset pricing and yields difficult to predict.

One of the strangest weeks in the history of Treasury Inflation-Protected Securities ended Thursday with a beautiful result for investors: The Treasury’s reopening auction of a 10-year TIPS got a real yield to maturity of 0.680%, much higher than looked likely just days ago.

Read my full analysis on SeekingAlpha.com