Treasuries Pare Gains After Record Auction of Five-Year TIPS
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Treasuries pared gains after a record sale of $14 billion of five-year inflation-indexed securities drew a negative yield for a second straight offering.
The auction of Treasury Inflation Protected Securities drew a yield of negative 0.180 percent, compared with the forecast of negative 0.1825 percent in a survey of 6 primary dealers. The bid-to-cover ratio, which gauges demand by comparing the amount bid with the amount offered, was 2.57, versus 2.84 at the last offering and 3.15 at the one before that. The U.S. said it will sell $99 billion next week of two-, five- and seven-year notes.