Direct Answer
TIPS pay a fixed real yield (above inflation) plus inflation adjustment via CPI. The 10-year TIPS real yield fell to -1.19% on August 3, 2021, meaning investors were willing to accept guaranteed loss of purchasing power to hold U.S. government bonds. Real yields turned positive in April 2022, reached 2.52% in October 2023 and 2.95% on October 5, 2026.
TIPS (Treasury Inflation-Protected Securities) Real Yield History
10-Year TIPS Real Yield at Selected Dates
| Date | 10-Yr TIPS Real Yield |
|---|---|
| Jan 2003 | 2.43% |
| Jan 2005 | 1.70% |
| Jan 2008 | 1.59% |
| Jan 2009 | 2.29% |
| Jan 2013 | -0.62% |
| Jan 2016 | 0.69% |
| Jan 2020 | 0.08% |
| Jan 2021 | -1.08% |
| Aug 3, 2021 (record low) | -1.19% |
| Jan 2022 | -0.97% |
| Apr 29, 2022 (turned positive) | 0.01% |
| Jan 2023 | 1.53% |
| Oct 25, 2023 (2023 high) | 2.52% |
| Jan 2024 | 1.74% |
| Sep 2024 | 1.73% |
| Dec 2024 | 2.24% |
| Dec 2025 | 1.93% |
| Oct 5, 2026 (2026 high) | 2.95% |
| Oct 9, 2026 (latest) | 2.91% |
Source: St. Louis Fed FRED: 10-Year TIPS Yield. Last verified: October 2026, values from the Treasury daily real yield curve (10 YR).
Frequently asked questions
What is a negative real yield and why would anyone accept it?
A negative real yield means you are guaranteed to lose purchasing power by holding the bond. For example, at -1% real yield, $100 in TIPS today becomes approximately $90 in real purchasing power after 10 years (even after inflation adjustment). Investors accepted negative real yields in 2020-2022 because: (1) Treasuries were one of few liquid, government-guaranteed instruments; (2) the alternative (cash, money market funds at 0%) was worse; (3) flight to safety during COVID created enormous demand; (4) Federal Reserve quantitative easing (purchasing $80-120B Treasuries/month) artificially suppressed yields.
How do TIPS compare to nominal Treasuries?
Nominal Treasuries pay a fixed dollar coupon; if inflation rises, real value of coupons erodes. TIPS adjust both principal and coupon for CPI, protecting against unexpected inflation. TIPS are superior when: actual inflation exceeds the breakeven inflation rate (the difference between nominal 10-year yield and 10-year TIPS yield). If the 10-year nominal yield is 4.5% and 10-year TIPS yield is 2.0%, the breakeven rate is 2.5% -- if actual inflation averages above 2.5% over 10 years, TIPS outperform; below 2.5%, nominal Treasuries outperform.
Should I hold TIPS in a taxable or tax-advantaged account?
TIPS are best held in tax-advantaged accounts (IRA, 401k, 403b). The reason: TIPS generate phantom income in taxable accounts -- you pay taxes annually on the inflation adjustment to principal even though you do not receive that cash until maturity or sale. This phantom income creates a negative cash flow in years of high inflation (you owe taxes on income you have not received yet). In a tax-advantaged account, this issue disappears: no annual tax on the inflation adjustment. TIPS ETFs (VTIP, SCHP, TIP) in taxable accounts face the same phantom income problem.
Cite This Page
If you reference this table in your own work, use the following citation format and add the date you accessed it:
Swoopr Editorial Team. (2026). TIPS (Treasury Inflation-Protected Securities) Real Yield History. Swoopr Investment. https://www.getswoopr.com/tables/bonds/tips-real-yield-history/
Check the figures against the primary sources listed under References before you rely on or republish them; the series they come from are revised.