Treasury’s Latest Inflation Bond Sale Lures Weak Investor Demand
- Ten-year TIPS sale tails following a major drop in real yields
- Inflation market remains on course for best month since March
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Investors held back from a sale of 10-year Treasury inflation protected securities, with demand tempered by this month’s big rally and outflows from exchange traded funds tracking the sector.
The reopening of 10-year TIPS on Tuesday was awarded at 2.18%, the highest auction yield since 2009. It was also more than 3 basis points higher than what the market expected, illustrating lackluster demand from buyers.