If you believe inflation is going to be less than 1.75% over the next 10 years you might want to buy the nominal Treasury bond versus buying TIPS. If you believe inflation is going to be greater than 1.75% over the next 10 years you would want to buy TIPS instead of nominal bonds.

Is Buying Tips A Good Investment?

TIPS and mutual funds that invest in TIPS can be stable investments because their low relative market risk. However, TIPS are not guaranteed investments and prices can fluctuate, similar to conventional bonds. ... Low market risk: TIPS are low-risk investments because they're Treasury bonds, backed by the U.S. government.

Are tips safe investment?

One option could be to invest in Treasury inflation-protected securities, or TIPS. Like typical Treasury bonds, they are issued and backed by the U.S. government — which makes them a generally safe investment.