That sounds about right. Add to that, then maturity event.

As an example, I just picked up some CUSIP 912810SV1 U S TREASURY NOTE INFLATION INDEX NOTE .125% 02/15/51 02/15/21 in my IRA. The price is currently is a substantial discount from par ($1,000 investment will get you about $1,500 of bonds, which gives you quite a bump when they approach maturity) as the worst yield to maturity is .669% compared to the .125% coupon. I don't need the income to live on and I'm guessing I will "mature" before the bonds do, but it seems like a conservative way to cache the money (rather than cash the money) at this stage of the game without being taxed on the bond's capital growth.

As everyone's circumstances are different, and my guess is no better than yours about the relevancy of the inflation figures the government will report in the future, please don't take this as investment advice.

Jeff

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