As an enthusiastic advocate of TIPs (together with other, more risky assets) I'd suggest this other Treasury site:
http://www.publicdebt.treas.gov/sec/seciis.htm
To add to Telly's comment about the interest rate on 10-year TIPs.....
The longest maturity that the Treasury is presently offering on new issue TIPs is 10 years, and these are paying about 1.9% plus actual inflation. However, previously issued TIPs with maturities up to about 30 years are readily available on the secondary market, and these are paying about 2.5% plus actual inflation. Unlike buying a used car, these "used" bonds guarantee better long-term performance than the "newer" ones!
Some people in other posts are bemoaning the fact that interest rates on short-term bonds/CDs etc. are so low. They apparently don't appreciate the fact that the only time that interest rates on short-term investments are "high," it is in response to high inflation that keeps the real rate of return near zero (or even negative after income taxes). A real rate of return much higher than that -- without associated risk -- is the financial equivalent of a "free lunch," and there ain't no such thing. TIPs with longer maturities are about the closest thing to a "free lunch" that anyone is likely to find.
Unlike forums in which I argue with people about public policy, I'm happy to have people not agree with me about TIPs, and not invest in them. The relatively modest demand for TIPs is what keeps the interest rate fairly high. I suspect that the demand will increase substantially when inflation increases, and I'm betting my invested money that it will.
(I'm not worried that the few dozen people who read this post will run out and drive down the interest rate on TIPs by buying them.)
|