Forex
Treasury TIPS Auction Yields Highest Real Yield Since 2008
The Treasury's reopening of its 10-year Treasury Inflation-Protected Security (TIPS) resulted in a real yield to maturity of 2.653%, the highest since October 2008.
The auction, which offered $19 billion, saw a bid-to-cover ratio of 2.24, lower than expected, indicating weak investor demand following the Federal Reserve's interest rate hike on Wednesday.
Despite this, investors who participated in the auction benefited from a higher real yield, which was 22 basis points above the previous auction and 75 basis points higher than the March reopening.