A 10-year TIPS matured today after paying a 0.045% real yield

The 10-year TIPS with CUSIP 912828S50 matured on 15 July. It was auctioned on 21 July 2016 at a real yield of 0.045%, with a coupon set at 0.125%, the lowest the Treasury will go. David Enna at Tipswatch worked through the result. Its final inflation index ratio was 1.39327, meaning principal grew about 39% over the decade, and the nominal annual return came to 3.381%. Inflation averaged roughly 3.4% over the same period. The 10-year nominal note trading alongside it in July 2016 yielded 1.59%, so the breakeven was 1.54%, and inflation came in well above that. An I Bond bought in July 2016 returned about 3.24% a year. Nobody knew that in 2016. The real yield bought almost nothing; the index ratio did the work. Treasury publishes this auction history only through an interactive query tool, so there is no fixed document address to link.