According to Bloomberg, a $16 billion auction of U.S. five-year inflation-indexed notes drew the highest yield in more than three years, with the Treasury Inflation Protected Securities sold yesterday yielding negative 0.127%.

“The front end of the TIPS curve is not an area where people are super-excited about after the backup in rates we’ve seen,” said George Goncalves, the head of interest-rate strategy at Nomura Holdings Inc., one of the 21 primary dealers obligated to bid at U.S. debt auctions. “Investors are even less worried about inflation as we get closer to tapering, because there will be less money in the system.”