April TIPS auction yield is 2.409%

Yesterday the Treasury held an auction for additional January 2006 10-year TIPS, which have a coupon rate of 2%. The price was 96.480271, which creates an actual yield of 2.409%.

TreasuryDirect investors will pay $969.89 for a single $1,000 face value TIPS. The price includes an interest reimbusement for the January - April period ($5.08378), which will be returned to investors as part of their July interest payment.

TreasuryDirect investors purchased about one-fourth of one percent of the securities. This includes both the online and legacy versions of TreasuryDirect.