singlestacksig
Master
I'm not fully sure as the TIPS is a special type of US Bond not like what most people are use to seeing/hearing/reading about (ie. the paper bonds). I'm trying to look up more information but at this point I don't see why anyone would give anyone $105.50 today with the promise that the borrower will either give me back $100 in five years of IF the CPI goes up 5% I will get back $105. In either case I'm still LOSSING money!
So from a laymens terms it's not a good deal to buy these types of bonds unless you are looking to make a loss.
Someone with more financial knoweledge care to post?
since the creation of Treasury Direct accounts average Joe can purchase TIPS in small amounts , like $25 .. but at market rate.. if enough people put in buy orders the price will just go up..
I don't think anyone really said "hmmm.. I think inflation will be greater than 5% , so I will bid $105.."