The U.S. Treasury on Thursday will auction $12 billion in a reopening of CUSIP 9128287D6, creating a 9-year, 8-month Treasury Inflation-Protected Security.
This TIPS was created in an originating auction on July 18, with a real yield to maturity (at that time) of 0.282% and a resulting coupon rate of 0.250%. Since July, real yields have briefly plummeted into negative territory, but have bounced higher in recent weeks.
A TIPS is a Treasury investment that pays a coupon rate well below that of other Treasury investments of the same term. But with a TIPS,