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5Y TIPS Review: Another Tail But Stronger Internals

US TSYS/SUPPLY
  • Another tail for 5Y TIPS, approx. 1.4bps after ~1bp at the Oct 20 auction.
  • Internals generally stronger, bid-to-cover picks up to 2.51% from a low 2.38, back close to the five auction average of 2.52.
  • Directs 17.8% vs 17.0% Oct and 5-auction av 12.1% although primary dealer 8.1% vs 7.7% Oct and 5-auction av 8.2%.

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