US Treasury sells $26B in 5-year TIPS at 2.367%, highest since 2023

The significance here lies less in the yield level than in what it signals about inflation expectations at the five-year point, where real yields are now at their richest since 2023. The bid-to-cover of 2.41 suggests the elevated yield drew buyers rather than deterring them, which is worth noting for anyone tracking whether demand for inflation protection is strengthening or merely price-sensitive. Whether this clearing level reflects durable inflation hedging or simply a yield-driven bid is the open question, and the next TIPS auctions along the curve will be the clearest read.