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J.P.Morgan Think 10-Year TIPS Supply Will Require Some Concession

US TSYS/TIPS

J.P.Morgan note that Thursday will see the Treasury auction "$14bn reopened 10-Year TIPS, unchanged from the last reopening auction. Current breakevens appear significantly wide relative to fair value and have widened sharply since the September reopening, while real yields have fallen over the period. Though end-user demand has remained robust, we think tomorrow's auction will require some concession, especially since breakevens remain near their widest levels in more than 15 years."

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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