The U.S. Treasury will offer a new 10-year Treasury Inflation-Protected Security - CUSIP 9128287D6 - in a $14 billion auction Thursday, with the real yield likely to fall substantially below recent results for this term.
As of Friday's market close, the Treasury was estimating the real yield (meaning, yield above inflation) of a full-term 10-year TIPS at 0.35%, down a dramatic 61 basis points from where it began the year. On January 17, a similar new 10-year TIPS auctioned with a real yield of 0.919%. We won't get anywhere close to that in Thursday's auction.