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 329,208.56 1277 8.09%
2 JPMorgan 321,584.64 1392 7.90%
3 Bank of America Merrill Lynch 296,878.25 1014 7.29%
4 Barclays 249,463.73 926 6.13%
5 Goldman Sachs 218,838.41 733 5.38%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 46,136.68 182 7.00%
2 JPMorgan 44,545.29 93 6.76%
3 UniCredit 35,639.50 153 5.41%
4 Credit Agricole CIB 33,211.72 160 5.04%
5 SG Corporate & Investment Banking 32,419.80 126 4.92%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Nov 2018
1 JPMorgan 13,755.50 61 8.94%
2 Goldman Sachs 13,469.15 66 8.76%
3 Citi 9,716.40 55 6.32%
4 Morgan Stanley 8,471.86 53 5.51%
5 UBS 8,248.12 34 5.36%