Bonds
Inflation-Protected Treasuries Draw Highest Yield Since 2009
- Ten-year TIPS auction was awarded at 2.243% on Thursday
- This time, economic fundamentals explain rising real yields
The US Treasury building in Washington, DC.
Photographer: Stefani Reynolds/BloombergThis article is for subscribers only.
An auction of inflation-protected US Treasuries on Thursday drew the highest yield in more than a decade.
The $20 billion sale of 10-year Treasury Inflation-Protected Securities, or TIPS, was awarded at 2.243%, the highest result since January 2009 and about a basis point higher than the indicated yield at 1 p.m. New York time, the bidding deadline. While Treasury yields of all types have been gradually rising and linger shy of their 2023 peak levels, auctions capture yields only once per month.