First Positive Yields in Four Years Bolster Five-Year TIPS Sale
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The first positive yields at a Treasury auction of five-year inflation-indexed notes since 2010 helped lift demand from a class of investors that includes foreign central banks to the highest on record.
The $16 billion of Treasury Inflation Protected Securities were sold at a yield of 0.395 percent, the first of 13 sales of the maturity where bidders weren’t willing to accept negative returns in exchange for a hedge against higher consumer prices. Indirect bidders bought 64.8 percent of the securities, the most in records dating to October 2004.