Demand at the quarterly 10-year TIPS sale from the US Treasury was softer than expected with a yield of -0.225% compared to -0.250 in the WI market.
The inflation-protected market has been in full retreat since the beginning of May with long-term yields moving up 40-50 basis points. It’s very difficult to say what that means because nominal yields have also moved up around 40 basis points.
It could be signalling worries about inflation, or it could simply be a rotation into stocks.