A new 10-year Treasury Inflation-Protected Security - CUSIP 9128287D6 - auctioned today with a real yield to maturity of 0.282%, the lowest yield for any auction of this term since September 2016.
This new TIPS got an auction-generated coupon rate of 0.250%, down a stunning 62 basis points since a similar auction on January 17. It is evidence of the market's quick adjustment to potential interest rate cuts by the Federal Reserve, which could begin later this month.
Investors at today's auction paid about $99.76 for about $100.11 of value, after accrued inflation is