The Treasury's $15 billion reopening auction of CUSIP 9128286N5 - creating a 4-year, 10-month Treasury Inflation-Protected Security - generated a real yield of 0.152%, dramatically lower than recent auctions of this term.
Just six months ago, in December, a similar five-year TIPS reopening went off with a real yield of 1.129%, a whopping 98 basis points higher than Thursday's result.
What caused the plummet? That December 20 auction came a day after the Federal Reserve raised its Federal Funds Rate by 25 basis points to a range of 2.25% to 2.50%, where it remains