Treasury Sells $10B in 10-year TIPS at a Yield of 1.430%
- The Treasury Department sold $10 billion in 10-year TIPS on Monday at a yield of 1.430%. The yield was well below Wall Street expectations (traders had expected TIPS due 2020 to yield about 1.48%), allowing the government to lower its cost for issuing the debt.
- The amount is $2 billion more than the last TIPS sale.
- Bid-to-cover ratio: $2.65 for each $1 of debt sold vs 2009 average of 2.59
- Indirects purchased 40.7% of the sale.
- Direct bidders bought 3.2%.
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