Treasury's $14 B 10-year TIPS sale was on the soft side
Treasury's $14 B 10-year TIPS sale was on the soft side. The auction stopped at 0.282%, tailing out versus the 0.264% at the bid deadline. That compares to the 0.919% rate from the last new issue in January (which totaled $!3 B). The $11 B May reopening stopped at 0.567%. There were $31.9 B in bids today for a weak 2.28 cover, versus the 2.42 ratio from January $31.4 B in bids) and 3.07 from May ($33.8 B in bids), but both of those auction volumes were smaller than today's. This is the lowest cover since in a year. Indirect bidders took 64.3%, not quite as strong as the 69.1% from January, but better than the 57.0% from the May reopening. The record high is 80.3 from May 2017.