U.S. Treasury 10-year TIPS preview:
U.S. Treasury 10-year TIPS preview: the $11 B reopening should get a decent bid thanks to the rise in inflation expectations. The wi is slightly higher around 0.92%, though it was as cheap as 0.933% earlier. This would be the highest stop since March 2011. The breakeven has widened and at 220 bps, which is the biggest gap since the summer of 2014. Rising oil prices, with WTI up over $80, should add to the uptick in inflation expectations too. On the other hand, the Fed's inability to get inflation to perk up could be a negative for the sale, as could be the 0.50% coupon. The March reopening stopped at 0.764% and saw a 2.56 cover and a 61.4% indirect bid. The January new issue was awarded at 0.548% and was covered 2.69 times and garnered a 78.9% indirect bid.