The U.S. 10-year TIPS real yield rose to 2.653%, the highest since the 2008 financial crisis.
The U.S. Treasury on Thursday issued $19 billion in 10-year Treasury Inflation-Protected Securities (TIPS), with the awarded real yield rising to 2.653%, approximately 1.9 basis points higher than the pre-auction market level, indicating investors are demanding higher real returns. The bid-to-cover ratio for this auction was 2.24, lower than the average of the previous three auctions. Analysts pointed out that the continuous rise in real yields reflects market expectations that inflation will not be effectively controlled and that the fiscal deficit will continue to expand.
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