My understanding is that the coupon is always set above the auction's winning yield (at the next increment of 1/8). TIPS 10Y rate now is 1.816%. If that's the winning yield, then the coupon will be 1.875%. Price will be below 1.00 as will inflation index.How do we know this? (Serious newbie question).And we know that the 2036 purchase price will be under par. E.g. 10 bonds < $10,000.
I have read it can be at par, under, or over for new issues. Is this not the case? Is it market conditions that let us know this?
Perhaps someone else can weigh in to confirm or correct.
Statistics: Posted by JohnDoh — Wed Jan 14, 2026 9:57 am — Replies 16 — Views 1423