The US will sell $13B in 10-year Treasurys Inflation Protected Securities (TIPS) on Thursday. The quick run-up in TIPS prices right after the Fed's new easing announcement risks deterring some buyers from the sale, but demand is still expected to come in strong even at a -0.84% yield. This would be the cheapest borrowing cost ever on 10-yr TIPS for the US government. "With the release of the Fed statement, I don't think there's going to be a shortage of buyers looking for inflation protection waiting in the wings," said Martin Hegarty, managing director and co-head of BlackRock's inflation-linked bond portfolios, who says the front- and long-dated ends of the TIPS market offer better value than comparable nominal Treasurys.
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