Treasury Inflation Protected Securities (TIPS)
U.S. Treasury Inflation Protection Securities, or TIPS, provides protection against inflation. The principal of a TIPS increases with inflation and decreases with deflation, as measured by the Consumer Price Index. When a TIPS matures, investors are paid the adjusted principal or original principal, whichever is greater.
TIPS pay interest twice a year, at a fixed rate. The rate is applied to the adjusted principal; so, like the principal, interest payments rise with inflation and fall with deflation.
Rates & Terms
ACAP Trading offers secondary liquidity on TIPS and offerings can be found on B.O.L.T.S.™. To view our Bonds On-Line Trading System™, please click here.