Federal Reserve buys Treasury Inflation Protected Securities (TIPS)
Posted on May 27th, 2009 at 12:56pm by bile
Tags: benchmark, Federal Reserve, Federal Reserve System, John Parry, New York, price inflation, TIPS, treasuries, treasury inflation protected securities, U.S. Treasury
NEW YORK, May 26 (Reuters) – U.S. Treasury debt prices weakened further on Tuesday after the Federal Reserve bought $1.55 billion of the $8.52 billion of Treasury Inflation Protected Securities (TIPS) dealers had submitted.
The benchmark 10-year Treasury note’s yield, which moves inversely to its price, rose to 3.46 percent <US10YT=RR>, from 3.45 percent shortly before details of the Fed operation. (Reporting by John Parry; Editing by Leslie Adler)
What?! The FED bought inflation proof treasuries. Price inflation that they primarily create through monetary inflation. Is this normal? I’ve not noticed it before.
