The US Treasury announced this morning that it will reopen CUSIP 912828N71 at auction on May 19, creating a 9-year, 8-month Treasury Inflation-Protected Security.
This TIPS originally auctioned on January 21 with a coupon rate of 0.625% and a real yield (after inflation) to maturity of 0.725%. But now, four months later, the TIPS market has taken a dismal turn for new investments:
- The real yield to maturity could be as low as 0.10%, down more than 60 basis points since January.
- Buyers are going to pay a premium, as much as 4.5% above par value.
- For small investors, I Bonds are clearly the superior inflation-protected investment.
Treasury Inflation-Protected Securities 
Yes, the purchase limit is not affected by an I Bond redemption. It remains $10,000 per person per year.