20-Year 2-3/8% Treasury Inflation-Indexed Bond, Due 1/15/2027
DTP20J27 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.10
Year-over-Year Change
2.80%
Date Range
10/6/2021 - 8/5/2025
Summary
The 20-Year 2-3/8% Treasury Inflation-Indexed Bond represents a critical financial instrument that provides investors with protection against inflation through its principal adjustment mechanism. This bond is particularly significant as it offers insights into long-term market expectations of 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 designed to preserve purchasing power by adjusting the principal value based on changes in the Consumer Price Index. Economists and investors closely analyze these securities to understand market-implied inflation expectations and real economic growth potential.
Methodology
The bond's principal value is calculated by multiplying the original principal by the ratio of the current Consumer Price Index to the CPI at the time of issuance.
Historical Context
Central banks and financial analysts use this bond's yield and pricing to assess long-term economic expectations and inform monetary policy decisions.
Key Facts
- Provides principal protection against inflation through periodic CPI adjustments
- Offers a fixed real yield with inflation compensation
- Represents a low-risk investment backed by the U.S. government
FAQs
Q: How do TIPS protect against inflation?
A: TIPS adjust the principal value based on changes in the Consumer Price Index, ensuring that the investment maintains its purchasing power over time.
Q: What makes this 20-year bond unique?
A: The extended 20-year maturity provides long-term investors with a stable, inflation-protected investment vehicle with predictable returns.
Q: How is the bond's value calculated?
A: The principal is multiplied by the ratio of the current CPI to the CPI at issuance, with interest paid on the adjusted principal.
Q: Who typically invests in these bonds?
A: Institutional investors, pension funds, and individual investors seeking long-term, low-risk investments with inflation protection often choose TIPS.
Q: How frequently is the bond's value adjusted?
A: The principal is adjusted semi-annually based on the Consumer Price Index, with interest payments calculated on the updated principal amount.
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Citation
U.S. Federal Reserve, 20-Year 2-3/8% Treasury Inflation-Indexed Bond, Due 1/15/2027 [DTP20J27], retrieved from FRED.
Last Checked: 8/1/2025