(Bloomberg) — The US Treasury plans to keep increasing issuance of inflation-protected securities at a pace that maintains the sector’s overall share of total US marketable debt.
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The department will keep the November 10-year Tips reopening auction size at $15 billion, and boost the January 10-year Tips new issue auction size by $1 billion to $18 billion, according to the latest quarterly debt refunding announcement, which covers the period from November 2023 to January 2024. It also said it will lift its December 5-year Tips reopening auction size by $1 billion.
“It would be prudent to continue with incremental increases to Tips auction sizes in order to maintain a stable share of TIPS as a percentage of total marketable debt outstanding,” according to the statement.
Tips yields, seen as reflecting the true cost of borrowing for the economy, have risen sharply this year and remain near peaks that mark the highest level since 2008. A Bloomberg index of Treasury inflation-protected securities fell 0.7% in October, marking the third straight month of declines. The gauge has fallen 1.5% so far this year.
Traders are now looking ahead to the Federal Reserve decision, with policymakers expected to leave their interest-rate policy steady and signal the need to monitor data as inflation hovers above the long-run target of 2%.
The following is a series of indicators on how the market views US inflation:
Inflation Snapshot
Inflation News Bites
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Turkey may exclude financial institutions from its planned switch to hyperinflation accounting
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US consumer confidence dropped to a five-month low in October, weighed down by dimmer views of business conditions and concerns about high prices
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Euro-area inflation eased to its lowest level in more than two years as the bloc’s economy shrank following an unprecedented ramp-up in interest rates
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Australian inflation is being driven by climate change, geopolitical shocks and government policies — factors typically beyond the Reserve Bank’s control
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Colombia held interest rates at a 24-year high as policymakers fret that inflation is taking too long to slow to their target
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Australia needs to tighten monetary policy further as part of stepped up efforts to rein in inflation that include governments slowing the pace of public investment, the International Monetary Fund said in a staff report
Key Upcoming US Releases
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Nov. 3: Non-farm payrolls, including hourly earnings and unemployment rate
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Nov. 8: University of Michigan survey of inflation expectations
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Nov. 13: New York Fed 1-year inflation expectations
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Nov. 14: CPI report; real average hourly and weekly earnings
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Nov. 15: PPI report
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Nov. 16: Import price index
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Nov. 22: University of Michigan survey of inflation expectations
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Nov. 29: GDP price index
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Nov. 30: Personal income and spending report, including PCE, for October
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Dec. 8: Non-farm payrolls, including hourly earnings and unemployment rate; University of Michigan survey of inflation expectations
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Dec. 12: CPI report; real average hourly and weekly earnings
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Dec. 13: PPI report; Federal Open Market Committee interest rate decision
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