TIPS Auction Slightly Weaker Than Expected

The Treausry just concluded its $9 billion auction of 30-year Treasury Inflation Protected Securities, and it was a little weaker than expected.

The bid to cover was 2.54 to 1, compared to 2.62 in previous auctions. Indirect bidders purchased 55.2% of the auction. Indirect bidders includes foreign central banks. This is up from an average of 42.4% of the 2010 sales.

Direct bidders purchased 3.6%. The yield on the auction was 2.19%.