Summary
- The Treasury will reopen CUSIP 912810SM1 in a Thursday auction, creating a 29-year, 6-month TIPS.
- The real yield looks likely to be around -0.26%, making this the first TIPS of this term to get a negative real yield.
- Investors will probably pay a huge premium, about 16% above par value. This TIPS isn’t attractive for a buy-and-hold-to-maturity investor.
- But for a TIPS trader, it might have speculative appeal.
The U.S. Treasury will be offering $7 billion Thursday in a reopening auction of CUSIP 912810SM1, creating a 29-year, 6-month Treasury Inflation Protected Security. Do I think you should invest in this TIPS? No. But let’s look at it anyway.
Read my full analysis on SeekingAlpha.com
Treasury Inflation-Protected Securities 
One oddity of TreasuryDirect is that it will always list opening and reopening purchases of same TIPS separately, even when…