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Each day, Benzinga takes a look back at a notable market-related moment that happened on this date.
What Happened? On this day in 1997, the U.S. Treasury introduced the first Treasury Inflation-Protected Securities (TIPS).
Where Was The Market? The S&P 500 was trading at 772.50 and the Dow Jones Industrial Average was at 6740.74.
What Else Was Going On In The World? In 1997,
Apple Inc. (NASDAQ: AAPL) co-founder Steve Jobs returned to the company, and the Mars Pathfinder successfully landed on the surface of Mars. A pound of hamburger meat cost $1.38.
Bond Investors Get Inflation Hedge: After years of having to battle inflation when buying Treasury bonds, investors got their first crack at TIPS investing in 1997. While the coupon rates of TIPS are constant, the principals are adjusted based on the Consumer Price Index, a commonly used metric for measuring inflation.