• TIPS, or Treasury Income Protected Securities, are popular choices for government bond funds. These investments are designed to pay higher interest as inflation rises, helping investors negotiate one of the primary fears they have when deciding whether to invest in government bonds. TIPS are sold through auction or on the open market, and most are available directly through TreasuryDirect.
  
  

5 Year

• The shortest duration TIPS mature in five years, although government bond funds are free to sell them on the open market at any time. These fluctuate less than longer term TIPS because the shorter duration allows investors and mutual fund managers to purchase without as much speculation about future interest rates as they would when purchasing longer term issues. These and longer term TIPS may be purchased on the open market, at auction or through non-competitive bidding.
  
  

10 Year

• TIPS that have a 10 year maturity are available through Legacy Treasury Direct, TreasuryDirect, banks, brokers and dealers. The mid-length TIPS fluctuates more in interest rate and price than the five year but less than the long-term TIPS available.
  
  

30 Year

• Long term TIPS aren't offered through Legacy Treasury Direct, but are available through TreasuryDirect. Because of the long term time frame on these bonds, interest rates and prices fluctuate more than for any of the other TIPS durations available.