Major Shocks, Major Real Interest Rate Increases

Real interest rates surged as TIPS yields spiked following major geopolitical shocks like 'Liberation Day' and the US-Iran war.

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Source: DepositPhotos

Big jumps in TIPS after “Liberation Day” and after the US-Iran war’s start.

Figure 1: Change in TIPS yield for 5 year (blue), 10 year (red), 30 year (teal), since 2/17/2026, all in %. Source: Treasury and author’s calculations.

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