30-Year TIPS Reopening Yields 2.973% Real Return, Highest Since 2001

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Source: https://tipswatch.com/
30-Year TIPS Reopening Yields 2.973% Real Return, Highest Since 2001
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TL;DR Summary

The Treasury reopened a 30-year TIPS, delivering a real yield to maturity of 2.973%—the highest for the term since 2001—after Treasury buybacks of long-term Treasuries briefly pushed yields lower before rebounding. The issue priced at 88.317, implying a $9,101.51 cost for a $10,000 par with an inflation index around 1.0306 and a 2.375% coupon; the 30-year inflation breakeven rate sits near 2.26%, suggesting long-run inflation protection. Investors see a near-zero real-risk return if held to maturity, though concerns about market manipulation and reinvestment risk temper the allure.

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