Assume that a trader is making a relative value trade, selling a U.S. Treasury bond and correspondingly purchasing a U.S. Treasury TIPS. Based on the current spread between the two securities, the trader shorts $100 million of the nominal bond and purchases$89.8 million of TIPS. The trader then starts to question the amount of the hedge due to changes in yields on TIPS in relation to nominal bonds. He runs a regression and determines from the output that the nominal yield changes by 1.0274 basis points per basis point change in the real yield. Would the trader adjust the hedge, and if so, by how much?