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'Off the charts' demand at 5-year TIPS auction

Published 04/20/2017, 03:44 PM
Updated 04/20/2017, 03:44 PM
© Reuters.  'Off the charts' demand at 5-year TIPS auction
  • Bond dealers took down just 16.7% of the sale, a record low amount by a full 200 basis points, according to Jefferies' Thomas Simons. Indirect and direct bidders (real-money investors) bought up the rest.
  • Simons, though, suggests the action was technical in nature, and doesn't expect anyone to chase the market here.
  • Aaron Kohli agrees, noting TIPS prices are improving after the auction, but he would be a seller if 5-year breakevens continue to drift higher into month-end.
  • ETFs: TIP, VTIP, SCHP, IPE, LTPZ, STPZ, TIPZ, STIP, TPS, TDTT, TIPX, TDTF, SIPE
  • Now read: The Federal Reserve, Trump, And $10.5 Trillion In Dollar-Denominated Debt In The World


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