The U.S. Treasury market continues to face pressure from rising inflation and the prospect of sustained interest rates. July’s Consumer Price Index (CPI) revealed a 2.9% annual increase, pushing the 10-year U.S. Treasury yield to its highest level in weeks. Meanwhile, the 30-year Treasury yield briefly surpassed 5% earlier this month, reflecting investor concerns about persistent inflation.

In this situation, balancing risk and return is critical – putting Treasury Inflation Protected Securities in the spotlight.
TIPS are indexed to inflation, to protect investors from a decline in the purchasing power of their money. As prices rise, they offer higher interest and coupon payments, making them particularly attractive.

“Using TraditionData’s newly added U.S. TIPS pricing data, we have plotted today’s TIPS and Normal Coupon Bond yield curves to gauge market sentiment of inflation expectations. Most notably, the decrease in yields for TIPS maturing in 6 months to 1 yr from today indicates a growing demand for these bonds.” Akshay Gupta, Senior Product Manager – Fixed Income.

TraditionData offers comprehensive U.S. Treasury market data coverage across Bills, Notes, Bonds, and TIPS – all sourced directly from our Global Fixed Income Brokerage Desks. As inflation and yields rebalance in the U.S., agile investors can leverage our data to find opportunities amidst market volatility.

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