20-Year 2% Treasury Inflation-Indexed Bond, Due 1/15/2026
DTP20J26 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.59
Year-over-Year Change
7.02%
Date Range
10/8/2021 - 8/7/2025
Summary
The 20-Year 2% Treasury Inflation-Indexed Bond represents a long-term government security designed to protect investors against inflation by adjusting principal based on changes in the Consumer Price Index. This financial instrument provides insights into market expectations of future inflation and real interest rates.
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
Treasury Inflation-Protected Securities (TIPS) are government bonds that provide a hedge against inflation by automatically increasing the principal value when inflation rises. Economists and investors closely monitor these securities to understand market sentiment about long-term economic conditions and inflation expectations.
Methodology
The bond's principal is adjusted quarterly based on the Consumer Price Index (CPI), with interest payments calculated on the adjusted principal value.
Historical Context
Central banks and financial analysts use this bond as a key indicator of market-implied inflation expectations and real interest rate trends.
Key Facts
- Provides protection against unexpected inflation
- Principal value adjusts with changes in the Consumer Price Index
- Offers a way to measure real interest rates and inflation expectations
FAQs
Q: How do Treasury Inflation-Protected Securities work?
A: TIPS adjust their principal value based on inflation, ensuring that the investment maintains its purchasing power. Interest payments are calculated on the inflation-adjusted principal.
Q: Why are TIPS important for investors?
A: TIPS provide a hedge against inflation risk, protecting investors from the erosion of purchasing power during periods of rising prices.
Q: How is the DTP20J26 bond calculated?
A: The bond's principal is adjusted quarterly using the Consumer Price Index, with interest payments based on the adjusted principal value.
Q: What does this bond tell us about the economy?
A: The bond reflects market expectations for long-term inflation and provides insights into investors' economic outlook.
Q: How often is this bond data updated?
A: The bond's data is typically updated quarterly, coinciding with CPI adjustments and market pricing changes.
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Citation
U.S. Federal Reserve, 20-Year 2% Treasury Inflation-Indexed Bond, Due 1/15/2026 [DTP20J26], retrieved from FRED.
Last Checked: 8/1/2025