---
title: "Rising Treasury yields challenge inflation hedge appeal of TIPS"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287688953.md"
description: "The 30-year Treasury yield has reached a 19-year high due to inflation driven by rising energy costs linked to the U.S.-Iran conflict. Analysts warn that TIPS ETFs are sensitive to interest rate changes, which can diminish their value despite inflation adjustments. Historically, the S&P 500 has seen an average decline of 7% in the months following new Fed rate hikes since 1999."
datetime: "2026-05-26T23:34:13.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287688953.md)
  - [en](https://longbridge.com/en/news/287688953.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287688953.md)
---

# Rising Treasury yields challenge inflation hedge appeal of TIPS

Yields hit long-term highs: The 30-year Treasury yield has reached its highest level in 19 years as inflation spikes from rising energy costs tied to the U.S.-Iran conflict. TIPS not risk-free: Analysts caution that TIPS ETFs carry significant interest rate sensitivity, meaning rising yields can erode their value despite inflation adjustments. Stocks face rate risk: Historically, the S&P 500 has declined in the months after new Fed rate-hike cycles, with average drops of 7% since 1999.

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