Treasury Inflation-Protected Securities

Treasury Inflation-Protected Securities

Treasury Inflation-Protected Securities

Treasury Securities are debt instruments that are issued by a government to finance government spending as an alternative to taxation. Funds collected through such tools are typically used to meet the short term requirements of a government, hence, to reduce the overall fiscal deficit of a country. These securities are usually seen as very safe investments since it’s not everyday news that governments fail to meet their obligations and as such, the interest rates on such securities are usually lower than what you’d get by parking money into another type of instrument. (more…)