The Treasury sold $10 billion of five-year Treasury Inflation Protected Securities at a negative yield for the first time in the history of U.S. debt. The securities drew a yield of negative 0.55 percent, the same as the average forecast in a Bloomberg News survey of 7 of the Federal Reserve’s 18 primary dealers. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 2.84. The average at the last 120 auctions was 2.38. The sale was a reopening of an $11 billion offering in April. “These negative yields are being driven by the Federal Reserve and their push to increase inflation expectations,” Michael Pond, co-head of U.S. rates strategy in New York at Barclays Plc, said before the sale. The firm is one of 18 primary dealers required to bid at Treasury auctions.
Treasury draws negative yield for first time
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