Strong bid in the inflation-protected bond sale
The 29-year 4 month bonds were trading at 1.218% before the auction. The previous sale was at 1.142%.
The takeaway here is inflation. 30-year nominal bonds are at 2.86% so takeaway in the 1.20% today and bonds imply 1.66% US inflation over the next 30 years.
The Fed likes to blame that low number on liquidity factors and certainty premiums but it's not the best signal. Even worse is that 5-year implied inflation is at 1.13% after falling below 1% in late Sept.
