Treasury 10-Year Real Yield Tops 2% for First Time Since 2009

The yield on 10-year inflation-protected Treasuries exceeded 2% for the first time since 2009, extending its ascent from year-to-date lows near 1%.

(Bloomberg) — The yield on 10-year inflation-protected Treasuries exceeded 2% for the first time since 2009, extending its ascent from year-to-date lows near 1%.

So-called real yields, representing the risk-free rate of return investors are seeking based on their expectations for riskier assets, collapsed to negative levels around -1% in 2020 and 2021 after the Federal Reserve slashed interest rates. That saw demand for inflation protection skyrocket.

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