The US Treasury sold $19 billion in 10-year inflation-linked securities at a real yield of 2.653%, the highest since October 2008. The auction was covered 2.24 times, reflecting sustained demand from institutional investors seeking inflation protection. This yield represents an increase of approximately 21.5 basis points from the 2.438% recorded in July’s auction. The US government’s borrowing costs continue to rise, increasing the interest burden on the national debt. Market participants will monitor upcoming CPI data to determine whether this yield level represents a ceiling or if the inflation protection premium will continue to widen.
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