Behind the Markets Podcast · Friday, July 24, 2026
Jeremy Schwartz discusses the rise in ten-year TIPS yields back to levels seen during the Fed's fight against inflation, noting that real yields are now over 2.5%. He contrasts this with historical data, suggesting current valuations are not near an inversion.
“Now, yields, though, why yields are going back up to the levels that they reached during the Fed squeeze against the inflationary pressures caused by the over expansion during, um, the COVID period.”
“Um, boy, big increases in real rates, then ten, what does that ten year tips? Um, well over two and a half or so.”
“I mean, that was an inversion that led to the crash. We are nowhere near any inversion on forward real returns today.”