Auction history: US to sell USD 26bln of 5-year TIPS at 18:00BST/13:00EDT

The upcoming auction of $26 billion in 5-year TIPS is noteworthy given the recent performance indicators.

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Auction history: US to sell USD 26bln of 5-year TIPS at 18:00BST/13:00EDT

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Auction History

  • Tail: (prev. -0.7bps, six-auction average 1.7bps)
  • High Yield: (prev. 1.433%, six-auction average 1.626%)
  • B/C: (prev. 2.62x, six-auction average 2.41x)
  • Dealer: (prev. 5.4%, six-auction average 12.8%)
  • Direct: (prev. 21.9%, six-auction average 20.6%)
  • Indirect: (prev. 72.6%, six-auction average 66.6%)
Context

The previous auction had a tail, suggesting weaker demand, but the bid-to-cover ratio was above average, indicating solid interest from bidders. This could signal investors' appetite for inflation protection, influencing TIPS yields and market sentiment in the fixed income space.

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