Fed boss Kevin Warsh: the bond market just lost some respect. Alright, let’s talk about the bond market. Treasury Inflation-Protected Securities (TIPS) are U.S. government bonds designed to protect investors savings from the ravages of inflation. The relative appeal of TIPs compared to ordinary Treasury bonds will ultimately be determined by the Breakeven Inflation Rate and how inflation progresses over the time the security is outstanding. If actual future inflation turns out higher than the breakeven rate, TIPS will generate a better total return than standard bonds.