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.
There is an active secondary market for Treasury Indexed Bonds. These institutions (listed alphabetically) have indicated that they make markets in Treasury Indexed Bonds. The level of activity can vary between institutions.