Treasury 10-Year TIPS Auction Rated ‘2’ by Five Primary Dealers

The Treasury Department’s $13 billion sale of 10-year inflation-index debt was rated a two by five of the Federal Reserve’s 22 primary dealers.

The characterization is based on a scale of one through five, with one being a failed auction and five judging the results as outstanding. Two would denote a poor auction, three an average sale and four would indicate a good offering, according to a Bloomberg News survey of the banks and brokerage firms obligated to bid on Treasury offerings.

Treasury Inflation Protected Securities, or TIPS, pay interest at lower rates than regular Treasuries on a principal amount that’s linked to the Labor Department’s consumer price index.

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