How is the inflation component reflected in the value of US Treasury Inflation Protected Securities (TIPS)?

TIPS trade with a value factor that captures the inflation component which will update over the life of the bond. Investors can find more information on TIPS methodology and to search by CUSIP for the factor schedule on the Treasury Direct website.

Market value of TIPS = face value * price in percent of par * value factor

i.e. 200k face value trading at 96.40 with a 1.25 inflation value factor = a market value of 241,000.00

All available TIPS can be located using our bond search tool → see US Treasuries tab → set the type to TIPS

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