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TIPS Mechanics
The mechanics of TIPS. How they are issued, how they are adjusted for inflation and deflation, and how they are paid out.

How TIPS Are Issued Print E-mail

TIPS are issued by the U.S. Treasury Department. In the second month of every quarter, February, May, August, and November, the Office of Debt Management in the Treasury Department holds a meeting on how it will borrow and fund the government's operations.

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How TIPS Are Adjusted for Inflation Print E-mail

Both the principal and the interest of TIPS are indexed to inflation. Specifically, the inflation number used is the Consumer Price Index for All Urban Consumers, Not Seasonally Adjusted (CPI-U NSA).
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TIPS During Deflation Print E-mail

Does the real Yield to Maturity (YTM) number quoted when an investor buys a TIPS still hold if there is deflation instead of inflation?
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TIPS and Original Issue Discount (OID) Print E-mail

Original Issue Discount (OID) comes into play if you own individual TIPS in a taxable account. It's not an issue if you own individual TIPS in a tax deferred or tax free account. It's also not an issue if you own TIPS mutual funds or ETFs in a taxable account.
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TIPS and Bond Premium Amortization Print E-mail

Bond premium amortization can also be an issue if you own individual TIPS in a taxable account. It's not an issue if you own individual TIPS in a tax deferred or tax free account. It's also not an issue if you own TIPS mutual funds or ETFs in a taxable account.
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