The 10-year TIPS auction was strong with a stop through of 4.0 bp and non-dealer bidding of 92.4% vs. an 87.2% average.
- High yield of 1.220% versus a six auction average of 0.411%.
- Bid/Cover was 2.79x compared to an average of 2.32x.
- Dealers took 7.6% against a 12.8% norm.
- Directs got 13.1% vs. an average of 17.2%.
- Indirects claimed 79.3% vs. a 70.0% average.
- Rates held a generally upward trend as breakevens widened into the auction and since the result, the selloff in Treasuries has stalled.