U.S. Sells TIPS at Record Low Yield on Demand for Haven
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The Treasury sold $14 billion in inflation-linked notes at a record-low negative yield as a stalemate in efforts to end a U.S. budget showdown threatened to push the economy into recession, spurring demand for refuge.
Yields on benchmark 10-year notes were little changed as House Speaker John Boehner said he expects to keep working on a budget plan with President Barack Obama. The House will vote on a Republican plan Obama has criticized for not seeking enough new revenue through taxes and has promised to veto. The U.S. faces $600 billion in automatic spending cuts and tax boosts starting next month if an accord isn’t reached. The sale of five-year Treasury Inflation Protected Securities drew a yield of negative 1.496 percent.