What is TIPS?
Treasury Inflation-Protected Securities (TIPS) are U.S. Treasury-issued bonds whose face value is pegged to the Consumer Price Index and adjusted with inflation. Commentary through mid-2026 tracked their yields and inflation-compensation signals, with several market observers arguing the instruments were unusually attractive relative to demand.
Release history
- Aug 2026 - Austan Goolsbee noted that even as CPI pushed close to 10% inflation, inflation compensation in TIPS held steadily at 2.3% CPI.
- Aug 2026 - Michael Batnick said investors could get 3% real in a government bond, adding that “no one cares” and “no one wants this stuff.”
- Sep 2026 - Michael Batnick flagged the 10-year TIPS yield at 2.6%, arguing that if inflation averaged 5% over the next decade a client would earn roughly a 7.6% nominal return on an asset essentially risk-free over the full 10-year period.
In the discourse
Attributed discussion of TIPS.
TIPS-implied inflation compensation held steady at roughly 2.3% CPI even as actual CPI approached 10%, suggesting the Fed's 2% target functioned as a credible anchor.
“Even as CPI was pushing close to 10% inflation, if you looked at inflation compensation in the tips, it remained steadily at 2.3% CPI.”Austan Goolsbee · 28 Aug 2026
The 10-year TIPS yield is at 2.6%, implying a roughly 7.6% nominal return if inflation averages 5% over the next decade on an essentially risk-free asset.
“10-year TIPS yield is at 2.6% today. That's really attractive. It means that if inflation averages 5% over the next 10 years, the client is going to get a roughly a 7.6% nominal return over the 10-year period on a on an asset that is essentially risk-free over the entire 10-year period.”Michael Batnick · 17 Sep 2026
TIPS (Treasury Inflation-Protected Securities) are worth watching as a client recommendation vehicle given a 2.6% real yield and inflation-hedge payoff structure at current valuations.
“10-year TIPS yield is at 2.6% today. That's really attractive. It means that if inflation averages 5% over the next 10 years, the client is going to get a roughly a 7.6% nominal return over the 10-year period on a on an asset that is essentially risk-free over the entire 10-year period.”Michael Batnick · 17 Sep 2026
Michael Batnick on TIPS at 3% real yield being ignored by investors.
“You can get 3% real in a government bond. Holy crap. And no one cares. No one wants this stuff.”Michael Batnick · 19 Aug 2026