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Macro

US Treasury sells $19B in 10-year TIPS at 2.653%, highest since at least 2008

The US Treasury auctioned $19 billion in 10-year inflation-protected securities (TIPS) at a high yield of 2.653%, the highest since at least 2008 and up from 2.438% in July. The bid-to-cover ratio was 2.24. The 10-year TIPS yield had reached 2.69% on September 16, the day the Federal Reserve announced a rate hike, marking its highest level since November 2008.

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AI take

The elevated real yield matters because it sets the inflation-adjusted cost of long-term government borrowing, a key input for all dollar-based assets, including tokenized Treasuries and other RWA yield products. It also reflects a market demanding more compensation for inflation risk at a time when the Fed is still tightening. Whether real yields hold near these levels—or the auction's strong bid-to-cover proves a one-off—is the open question for RWA pricing.

Generated by AI for reference only.

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