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Banking, finance, and taxes

TIPS Buyers Get Negative Interest Rate

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By Paul Ausick Published
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Today’s auction of $13 billion in US 10-year Treasury Inflation-Protected Securities (TIPS) went off at a yield of -0.89%, just the second time that yields have turned negative. Demand for the securities came in at 2.81x the total value of the offer.

Buyers are willing to accept a negative interest rate on TIPS because the securities also pay the rate of inflation. 10-year Treasury note yields are also down today as the weak manufacturing reports out of Europe and China made US debt more desirable.

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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