10-year Treasury Inflation-Protected Securities real yields surge to 2.1%, more than double their decade average, offering rare inflation-adjusted returns.
Real yields on Treasury Inflation-Protected Securities (TIPS) have climbed to their highest levels since before the Covid-19 pandemic, reaching 2.1% for 10-year maturities. This marks a significant increase from the decade average of 0.9%, with shorter-term yields also rising sharply to 2.2% for one-year TIPS, up from 0.3% historically.
The surge spans the maturity spectrum, with five-year TIPS yielding 2.01%, 10-year at 2.31%, and 30-year at 2.87% as of July 17, 2026. TIPS adjust principal and interest payments based on the Consumer Price Index, providing protection against inflation. The elevated yields may compress if inflation expectations decline or the Federal Reserve cuts interest rates.
Investors are eyeing TIPS ladders, which now offer a guaranteed inflation-adjusted withdrawal rate of about 4.9% annually for 30-year maturities, reshaping retirement income strategies.