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5 Part Series:Inflation-indexed bonds fill an important gap in the fixed income market. Regular Treasury bonds are riskier than they seem – long-term Treasuries fell 60% in inflation-adjusted terms between 1940 and 1981. Minimizing duration is not a solution since real rates for short-term Treasuries have been as low as -9%. TIPS solve these issues by offering a safe bond investment not vulnerable to inflation.