Seeking Alpha

Treasury prices add to gains following the TIPS auction at which 10-year inflation-protected...

Treasury prices add to gains following the TIPS auction at which 10-year inflation-protected paper was sold for a negative yield for only the 2nd time. The 10-year note (very much not inflation-protected) is off 3.4 bps to 2.26%. The long bond -2.8 bps to 3.36%.
Comments (4)
  • It is just amazing that anybody is buying Bonds for a Negative Yield. Utter amazement.
    22 Mar 2012, 02:00 PM Reply Like
  • Yeah, it's weird. Nice for the U.S. though.
    22 Mar 2012, 09:41 PM Reply Like
  • The preservation of income methodology is still at work particularly for the ultra-wealthy. If you have huge sums of money, laying around. Their are those that would be interested in those huge sums of money. Treasury Inflation Protected Securities are a method of investing in immediate financing for the government or holders of government securities, and getting the principal amount back in full. Investment is about protecting huge sums of money, and their are venues with varying ranges of interest that must be paid to your to hold your money. In this instance, an investor is still having a guaranteed vehicle to store their money securely, at this particular moment in economic history they must pay in order to have their funds protected. At some point it is possible for them not to pay for those funds, maybe those interest rates rise in the near future. Who knows?
    22 Mar 2012, 06:44 PM Reply Like
  • Folks better look very closely at exactly WHO is buying...

     

    All auctions will magically sell as a requirement of confidence in the USD, even negative yield paper...lol
    22 Mar 2012, 10:15 PM Reply Like
DJIA (DIA) S&P 500 (SPY)