• The real yield looks likely to come in around 0.46%, down 63 basis points from the originating auction in February.
• Buyers will be paying a steep premium for the coupon rate of 1.0%, about 15% above par value.
• The inflation breakeven rate is currently running at a very low 1.57%, which should make this auction attractive for big-money investors.

Thursday’s reopening auction of CUSIP 912810SG4 – creating a 29-year, 6-months TIPS – is a particularly gruesome offering. The Treasury is selling $7 billion of this reopened TIPS, but no one outside of a central bank or pension fund should touch it.

Read my full analysis on SeekingAlpha.com