The US re-opened a TIPS issue in a bond auction and it sold with a 0.339% (plus inflation) yield. That’s much lower than the 0.659% sale in March and 2 basis points below the when-issued yield.
The strong demand puts 10-year breakevens at 2.11%, which implies inflation at that rate over the next decade.
The broader Treasury market (and FX) have had no reaction to the auction. If anything, yields and USD/JPY have edged higher.
