U.S. Sells TIPS With Positive Yield for First Time Since 2011
This article is for subscribers only.
The U.S. sold 10-year Treasury Inflation Protected Securities at a positive yield for the first time since November 2011 with investors unwilling to pay a premium to guard against the threat of rising consumer prices.
The $15 billion in TIPS were auctioned yesterday at what’s known as a high yield of 0.384 percent, compared with a forecast of 0.399 percent, the average estimate in a Bloomberg News survey of seven of the Federal Reserve’s 21 primary dealers that are required to bid on U.S. debt sales. The last nine sales of the securities were at negative yields.