With inflation edging to its highest level in 15 years, a lot of investors are discovering Treasury inflation-protected securities, or TIPS. They are government bonds that offer a guaranteed cushion against inflation, and since they were introduced in the late 1990s, investors have sucked up $350 billion worth--equal to nearly 10% of all outstanding Treasury securities. Much of the demand has surfaced in the past two years, as inflation pushed north of 3% (4.1% annual rate in January) and the TIPS program expanded to include five- and 20-year bonds along with the flagship 10-year I-bond.
Britain, Germany and Japan have similar...
To continue reading:
or
Log-In
