Summary of Treasury Inflation-Adjusted Securities

The market for US Treasury securities is actively and highly liquid. As a new type of security, inflation-adjusted securities may not be as well developed and understood as other types of Treasury securities. This could result in larger spreads between what a dealer is willing to pay for an inflation-adjusted security and what sellers are willing to sell them for, leading to higher costs for the common investor. There are still unknowns associated with Treasury inflation-adjusted securities not ordinarily associated with other Treasury notes. For example, what happens if the structure of the CPI-U index is changed? But regardless of the uncertainties, these unique bonds are often considered one of the safest types of investments you can buy.