Bonds

Lesser-Known Treasury Yield Is on Brink of Historic Breakthrough

  • Inflation-protected 30-year yield near 2%, highest since 2011
  • TIPS auction on Aug. 24 will reveal strength of buyer interest

The US Treasury building in Washington, DC.

Photographer: Nathan Howard/Bloomberg
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Short-term Treasury yields once again advancing toward 5% hog the spotlight, but there’s another drama unfolding in a lesser-known corner of the US government bond market.

The yield on 30-year inflation-protected Treasuries is on the cusp of exceeding 2% for the first time in more than a decade. Whether it gets there and where it will stop if it does has bond investors on edge.