Treasury Sells 10-Year TIPS at Negative Yield for First Time
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The U.S. sold a record $15 billion in 10-year Treasury Inflation Protected Securities at a negative yield for the first time with investors willing to pay a premium to guard against the threat of rising consumer prices.
The TIPS were auctioned at a so-called high yield of negative 0.046 percent, compared with a forecast of negative 0.027 percent, the average estimate in a Bloomberg News survey of eight of the Federal Reserve’s 21 primary dealers that are required to bid on U.S. debt sales. The last four sales of five-year TIPS were at negative yields.