Treasury's $11 B 10-year TIPS reopening was lackluster
Treasury's $11 B 10-year TIPS reopening was lackluster and garnered a little less sponsorship than analysts anticipated. The auction stopped at 0.764%, fractionally inside the 0.765% on the wi into the bid deadline. But it's 22 bps cheaper than the 0.548% award rate for the $15 B new issue in January. And despite the smaller auction size (by $2 B) versus the new issue, the cover was only 2.56 (bids totaled $28.1 B), below the 2.69 in January. However, it's modeslty better than the 2.43 for the November reopening and the 2.32 from September. Indirect bidders took 61.4%, less than the 78.9% previously, and is the smallest amount since January 2016. Yet, one supportive statistic was the 16.7% take by direct bidders, up from 10.0% previously and is the highest since November 2013.