Treasury's 10-year TIPS preview: the $11 B reopening may be weakened
Treasury's 10-year TIPS preview: the $11 B reopening may be weakened by the drop in oil prices, even as other inflation indicators over the month have been mixed. The wi security is trading around 1.095%, with the benchmark at 1.099%. The latter hit a recent high of 1.164% on November 8. The breakeven is at 197 bps. In fact, the BE has been narrowing since hitting 217 bps in early October. Inflation trends seem rather uncertain at this point and that could contain demand today, along with the worries over weakening global growth and concerns over more Fed rate hikes. The $11 B September reopening tailed about 1.5 bps to 0.910% and saw a 2.57 cover and a 69.5% indirect bid. The $13 B new issue from July also tailed about 1.5 bps to 0.762% and garnered a 2.22 cover and a 62.1% indirect bid.