And just like conventional Treasury bonds (NYSEARCA:TLT), TIPS are impacted by movements in the interest rate marketplace. TIPS first hit the market in the late 1990s and are government-issued fixed-income securities that are backed by the full faith and credit of the US government for timely payment of interest and principal. In the case of US TIPS, the bond or note's face value is adjusted monthly according to the rate of inflation as measured by the US consumer price index ( CPI ).