Treasury Inflation Notes Outperform as U.S. Auctions $13 Billion
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U.S. inflation-indexed bonds are outperforming Treasuries as investors seek a hedge against the risk of higher consumer prices.
Today’s $13 billion auction of 10-year Treasury Inflation Protected Securities attracted the highest demand in two years, including record purchases from a category of bidders that includes foreign central banks. The surge in demand pushed the gap between yields on fixed-rate Treasuries up the most in a month. The notes were sold at a yield of 0.339 percent.