Treasury Indexed Bonds
Treasury Indexed Bonds are medium to long-term securities for which the capital value of the security is adjusted for movements in the Consumer Price Index (CPI). Interest is paid quarterly, at a fixed rate, on the adjusted capital value. At maturity, investors receive the adjusted capital value of the security – the value adjusted for movement in the CPI over the life of the bond.
Indicative yields for Treasury Indexed Bonds are published by the Reserve Bank of Australia.
Active market makers
There is an active secondary market for Treasury Indexed Bonds. The Treasury Indexed Bond market makers are: