Summary Box: Inflation bonds sold at subzero yield

AP News
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Posted: Oct 25, 2010 6:17 PM
Summary Box: Inflation bonds sold at subzero yield

SUBZERO RATES: The Treasury auctioned inflation-protected bonds at a negative 0.55 percent Monday, the first time the government has sold bonds at a negative yield.

BETTING ON INFLATION: Five-year TIPS yields have been mired in negative territory for a month, a sign that investors expect inflation to regain strength. TIPS' principal and payout tracks the consumer price index _ a rise in the index pushes both higher.

TREASURYS FLAT: The yield on the 10-year note ended the day at 2.56 percent, unchanged from late Friday. The two-year note stayed at 0.36 percent.