Investors scoop up U.S. 10-year TIPS supply
| Reuters
1. Investors scoop up U.S. 10-year TIPS supply | Reuters
NEW YORK Jan 22 Investors bought a majority of
the $15 billion worth of U.S. 10-year Treasury
Inflation-Protected Securities offered on Thursday, suggesting
demand for higher-yield U.S. bonds as European yields hit record
lows.
The risk to own U.S. TIPS was reduced earlier after the
European Central Bank said it will embark on a bond purchase
program, worth 60 billion euro a month, aimed at averting
deflation spreading across the euro zone.
The latest ECB stimulus move was also seen critical in
stemming downward price pressure in Europe from exacerbating
already weak price growth in the United States.
The latest 10-year TIPS issue fetched a
yield of 0.315 percent, the lowest the U.S. government has paid
on this maturity since an auction in July 2014.
Foreign central banks, fund companies and other indirect
bidders bought 63.95 percent of the 10-year TIPS supply, which
was their largest share since an auction last May.
Large fund managers, smaller bond dealers and other direct
2. bidders bought 10.2 percent of the 10-year TIPS supply, which
was their biggest share since an auction in July.
Primary dealers or the top 22 Wall Street firms that do
business directly with the Federal Reserve bought 25.85 percent,
their smallest share since these figures were available going
back to 2003, according to Treasury data.
(Reporting by Richard Leong; Editing by James Dalgleish)
