Thursday morning, the U.S. Treasury Department announced details for its auctions of 10-year inflation protected securities and 52-week bills.
The government revealed that it would sell $6.0 billion of the 10-year inflation immune treasuries, also called TIPS, next Tuesday at 1 PM ET.
The previous auction was for $8.0 billion worth of the securities, drawing a yield of 2.245 percent, while attracting strong demand with the bid-to-cover ratio coming in at 2.48.
Investors will be especially focused on the ten-year TIPS auction, as the spread between the security and the regular ten-year note will give an indication of near-term inflation.
The government also announced details for its auction of $25.0 billion in 52-week bills set for 11:30 AM ET next Tuesday. The bond is set to mature April 8th, 2009.
The previous auction for comparable securities took place early last month, when the Treasury sold $24.0 billion worth of the securities. The auction drew a yield of 0.7 percent, while attracting unusually strong demand, with the bid-to-cover ratio coming in at 3.51.
In other treasury news today, the New York Federal Reserve continued to buy back treasuries as part of its effort to lower interest rates and thaw the credit markets.
The New York Fed purchased approximately $7.5 billion worth of long-term securities with maturity dates ranging from September of 2013 to February of 2016.
The program has seen strong interest, with dealers submitting a total of $26.25 billion in treasuries for the purchase.
In the bond markets, treasuries are seeing substantial weakness amid a rally on Wall Street, driving the yield on the benchmark ten-year note up 9.4 basis points to 2.75 percent.
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