It looks like today’s reopening of CUSIP 912828B25, creating a 9-year, 10-month TIPS, could auction with a yield to maturity above 0.60%, much higher than looked likely just a few days ago.

Bloomberg’s Current Rates site is flashing a yield of 0.63% for this TIPS, a nice tick up from Wednesday’s closing price of 0.571%. On Monday, it closed at 0.493%.

This uptick in yields results from fears that the Federal Reserve will (eventually) begin raising short-term interest rates. Which of course it will. But when? The market seems to believe the rise could begin early instead of later in 2015.

If the yield of 0.63% holds for CUSIP 912828B25, buyers should be paying close to par value for this TIPS, which has a coupon rate of 0.625% and almost no inflation appreciation since the initial January auction.