Auction History: US to sell USD 9bln of 30-year TIPS at 18:00GMT/13:00EDT

The upcoming auction of USD 9 billion in 30-year TIPS is noteworthy, especially with the previous high yield at 2.650%, significantly above the recent average.

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Auction History: US to sell USD 9bln of 30-year TIPS at 18:00GMT/13:00EDT

US 30-year fixed rate mortgage rate (19-Feb, average): 6.01% (prev. 6.09% W/W), via Freddie Mac

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  • High Yield: (prev. 2.650%, six-auction average 2.138%)
  • Tail: (prev. -2.3bps)
  • B/C: (prev. 2.78x, six-auction average 2.52x)
  • Dealer: (prev. 4.5%, six-auction average 7.0%)
  • Direct: (prev. 25.1%, six-auction average 17.9%)
  • Indirect: (prev. 70.4%, six-auction average 75.2%)
Context

Given the tail and bid-to-cover ratio showing strong demand, this could indicate healthy investor appetite for long-duration inflation-protected securities, potentially impacting long-term rates and risk sentiment accordingly.

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