10-Year TIPS Reopening Gets Real Yield Of -0.47%, Lowest Since 2013

Summary

  • In its five-month auction history, CUSIP 912828Z37 showed remarkable volatility, with a swing of 115 basis points from March to May.
  • Today’s real yield of -0.47% was the lowest at auction for any 9- to 10-year TIPS since March 2013.
  • Negative real yields are the new normal and will continue as long as the Federal Reserve continues interventions into the bond market.

For the first time in 42 consecutive auctions of this term stretching over seven years, the real yield on a 10-year TIPS went negative Thursday, dropping to -0.47% in a $12 billion Treasury offering.

Read my full analysis on SeekingAlpha.com

CUSIP 912828Z37

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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