Long TIPS Yields Hit Record Low

The long end of the Treasury inflation-protected securities yield curve fell to an all-time low last week.

  • 11 Feb 2005
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The long end of the Treasury inflation-protected securities yield curve fell to an all-time low last week. The yield of the April '32s fell to 1.72% on Feb. 8, the lowest since the issue was released in 1998. Alex Li, interest-rate strategist at Credit Suisse First Boston, said he considers the drop surprising given the Federal Reserve continues to raise interest rates, but sees the buying of longer-dated paper by pension managers trying to match assets and liabilities as a major factor in driving up prices on the issuance (BW, 2/4).

The yield of the April '32s hit a high in 2000 of 4.4%. Over 2004, yields on the issuance stayed within a range of 1.9% to 2.5%.

Other interest-rate strategists say the falling of the TIPS curve follows the general trend of curve flattening. "All long securities are falling in yield. Long principals blasted through previous all-time low yields," said one TIPS strategist.

The new low was partly caused by the market's rally on Feb. 4 after the nonfarm payroll data was released but is also a sign of reduced growth expectations by market participants. "It's a reflection economic growth over the long term will be slow," Li said.

  • 11 Feb 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 239,928.76 921 8.16%
2 JPMorgan 222,471.63 995 7.57%
3 Bank of America Merrill Lynch 215,931.77 721 7.34%
4 Barclays 184,694.55 670 6.28%
5 Goldman Sachs 158,679.40 515 5.40%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 32,522.19 61 6.59%
2 BNP Paribas 32,284.10 130 6.54%
3 UniCredit 26,992.47 123 5.47%
4 SG Corporate & Investment Banking 26,569.73 97 5.38%
5 Credit Agricole CIB 23,807.36 111 4.82%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 10,167.68 46 8.82%
2 JPMorgan 9,894.90 42 8.58%
3 Citi 8,202.25 45 7.11%
4 UBS 6,098.17 23 5.29%
5 Credit Suisse 5,236.02 28 4.54%