- 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.