Market Yield on U.S. Treasury Securities at 5-Year Constant Maturity, Quoted on an Investment Basis, Inflation-Indexed
This dataset tracks market yield on u.s. treasury securities at 5-year constant maturity, quoted on an investment basis, inflation-indexed over time.
Latest Value
1.37
Year-over-Year Change
-3.52%
Date Range
1/2/2003 - 8/6/2025
Summary
The DFII5 series tracks the 5-year Treasury Inflation-Protected Securities (TIPS) yield, providing a market-based measure of real interest rates adjusted for expected inflation. This metric is crucial for investors and policymakers to understand the underlying economic expectations and real cost of borrowing.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This trend represents the inflation-adjusted return on 5-year U.S. Treasury securities, reflecting investors' expectations of future real economic conditions. Economists use this indicator to gauge market sentiment about long-term economic growth and inflation expectations.
Methodology
The data is calculated daily by the U.S. Treasury, based on the yields of recently issued 5-year inflation-protected securities traded in the secondary market.
Historical Context
Central banks and financial analysts use this metric to inform monetary policy decisions and assess the market's perception of future economic conditions.
Key Facts
- TIPS provide protection against inflation by adjusting the principal based on changes in the Consumer Price Index
- The yield represents the real return after accounting for expected inflation
- Negative yields can indicate market expectations of economic challenges
FAQs
Q: What does a negative DFII5 yield mean?
A: A negative yield suggests investors expect inflation to outpace nominal returns, indicating potential economic uncertainty or expectations of low economic growth.
Q: How do TIPS differ from traditional Treasury securities?
A: TIPS adjust their principal value with inflation, protecting investors from purchasing power erosion, unlike traditional fixed-rate securities.
Q: How often is the DFII5 data updated?
A: The data is typically updated daily by the U.S. Treasury, reflecting current market conditions and investor expectations.
Q: Why do investors care about the DFII5 yield?
A: Investors use this metric to make informed decisions about long-term investments, understanding real returns after accounting for inflation.
Q: What are the limitations of the DFII5 data?
A: The data represents market expectations, which can be volatile and may not perfectly predict actual future inflation or economic conditions.
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Citation
U.S. Federal Reserve, Market Yield on U.S. Treasury Securities at 5-Year Constant Maturity, Quoted on an Investment Basis, Inflation-Indexed [DFII5], retrieved from FRED.
Last Checked: 8/1/2025