The US 5-year TIPS auction produced a high yield of 2.367%, up from 1.955% previously, with a bid-to-cover ratio of 2.41 versus 2.61 prior.
LiveSquawk10/23, 12:03 AM
Market impact
Which way this story pushes each asset. An inference from the story, not a measured move.
USD
Pushes up
DaysMedium confidence
Weaker 5Y auction demand and higher yield can make USD assets more attractive
Gold
Pushes down
DaysMedium confidence
Higher yields from the weak auction raise the opportunity cost of holding gold
What could change this
If the yield rise mainly reflects term-premium or fiscal concerns rather than stronger fundamentals, the USD support could be weaker.
Related assets
Coming up for UST5Y
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FinancialJuice10/23, 04:03 AM
US 5-year TIPS high yield auction came in at 2.367%, up from 1.955% previously.