What Are TIPS?
Redacció de Financial World News · Explicació educativa · Com obtenim les rendibilitats
Treasury Inflation-Protected Securities adjust principal with CPI-U. Real yield is the quoted market rate.
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What Are TIPS — the mechanics
TIPS pay a real coupon on an inflation-adjusted principal. Deflation can reduce principal before maturity, but at redemption you receive at least par. They are the US analogue of index-linked gilts, with different index and tax details.
Treasury Inflation-Protected Securities scale principal with CPI-U. Coupons are a real rate times the inflation-adjusted principal. At maturity you receive the uplifted principal, with a par floor if deflation occurred (for original issue).
TIPS real yields can be low. You are paying for inflation protection that the market already partly priced.
US tax can charge phantom income on principal accretion in taxable accounts. Many US holders keep TIPS in IRAs. Non-US tax treatment differs — local advice, not this page.
Official sources (US Treasuries)
Primary statistics and prospectuses for US Treasuries are published by the issuer, not by this newsroom. The labelled links at the end of this page go to those official sites (DMO, TreasuryDirect, Finanzagentur, MEF, AFT, SNB or ECB as relevant).
Our live board is a teaching overlay: dated prints, named sources, estimated ISIN lines. It is not a replacement for the issuer’s calendar.
Punts clau
- Treasury Inflation-Protected Securities scale principal with CPI-U.
- Prices and yields change. When this site quotes them, it dates them on the live board.
- Credit of a G7 government in its own currency is not the same as a stable screen price, and not the same as a bank deposit.
FAQ
- Are TIPS tax-free?
- No. Phantom inflation accretion can be taxable in taxable accounts even before you sell. Many holders use tax-advantaged wrappers.