This afternoon’s U.S. Treasury auction marked the first-time ever that Treasury Inflation Protected Securities (TIPS) were sold at a negative yield, meaning that investors were willing to
pay the government simply for the right to own these securities.
$10 billion of five-year TIPS were sold at -0.55%, indicative of the extremely strong demand amongst investors for securities indexed to inflation amid the inherent inflationary consequences of the Federal Reserve’s monetary policies.
