Treasury Inflation-Protected Securities (TIPS) Market Outlook

According to our latest research, the global Treasury Inflation-Protected Securities (TIPS) market size reached USD 1.12 trillion in 2024, reflecting the growing demand for inflation-hedged investment vehicles. The market is projected to expand at a CAGR of 6.1% from 2025 to 2033, with the market value expected to reach approximately USD 1.91 trillion by 2033. This robust growth is primarily driven by heightened concerns over inflationary pressures, increased institutional participation, and the rising need for portfolio diversification in uncertain economic climates. As per our latest research, a combination of macroeconomic volatility and evolving investor preferences continues to shape the trajectory of the TIPS market globally.

One of the primary growth factors for the Treasury Inflation-Protected Securities (TIPS) market is the persistent uncertainty surrounding global inflation. In recent years, the resurgence of inflation across major economies has reignited interest in instruments that can offer protection against eroding purchasing power. TIPS, which are designed to adjust their principal value in line with the Consumer Price Index (CPI), have become increasingly attractive to both individual and institutional investors seeking to safeguard their capital. The growing awareness of the limitations of traditional fixed-income securities in inflationary environments has led to a strategic shift, with asset managers and pension funds allocating a larger proportion of their portfolios to TIPS. This trend is further supported by the growing sophistication of investors who are now more inclined to utilize advanced financial instruments for risk management and yield optimization.

Another significant driver fueling the expansion of the TIPS market is the evolving regulatory and policy landscape. Central banks and financial regulators in developed markets, particularly in North America and Europe, have introduced measures aimed at enhancing market transparency, liquidity, and accessibility. These initiatives have not only increased the supply of TIPS but have also facilitated broader participation by lowering entry barriers for retail investors. Additionally, the proliferation of digital trading platforms and the integration of TIPS into major bond indices have contributed to improved price discovery and secondary market liquidity. These developments have made it easier for investors of all sizes to access, trade, and manage TIPS holdings, further bolstering market growth and deepening investor engagement.

The increasing adoption of TIPS for portfolio diversification and retirement planning represents another crucial growth factor. With the demographic shift towards an aging population, especially in developed economies, there is a heightened emphasis on preserving wealth and ensuring stable income streams during retirement. TIPS, with their inflation-adjusted returns and government backing, are increasingly being incorporated into target-date funds, pension plans, and retirement portfolios. Financial advisors and wealth managers are proactively educating clients about the benefits of TIPS as a strategic hedge against long-term inflation risks. This growing demand from the retirement planning segment is expected to provide a steady and resilient source of growth for the TIPS market over the forecast period.

In addition to TIPS, investors are increasingly exploring Perpetual Preferred Securities as a viable option for income generation and capital preservation. These securities, which offer fixed dividends and have no maturity date, provide a steady income stream that can be particularly appealing in low-interest-rate environments. The perpetual nature of these securities allows investors to benefit from ongoing income without the pressure of reinvestment risk associated with traditional bonds. As economic conditions fluctuate, Perpetual Preferred Securities offer a blend of equity and fixed-income characteristics, making them a strategic choice for those looking to diversify their portfolios and hedge against inflationary pressures. The growing interest in these securities is reflective of a broader trend towards seeking stable, long-term investment solutions in uncertain economic times.

Regionally, North America remains the dominant force in the gl

Treasury Inflation-Protected Securities (TIPS) Market Outlook

According to our latest research, the global Treasury Inflation-Protected Securities (TIPS) market size reached USD 1.85 trillion in 2024, with a robust year-over-year growth rate driven by heightened investor focus on inflation risk management. The market is projected to expand at a CAGR of 6.2% from 2025 to 2033, reaching an estimated value of USD 3.17 trillion by the end of the forecast period. This impressive trajectory is supported by persistent inflationary pressures, increased demand for inflation-hedged instruments, and growing institutional participation, as per our comprehensive 2025 industry analysis.

The primary growth driver for the TIPS market is the global economic environment characterized by recurrent inflationary cycles and macroeconomic uncertainties. As central banks in major economies continue to adjust monetary policies in response to inflation, investors are increasingly seeking assets that offer real returns and preserve purchasing power. TIPS are uniquely structured to provide a hedge against inflation, as their principal and interest payments are directly linked to the Consumer Price Index (CPI). This feature has amplified their attractiveness to both institutional and retail investors, especially during periods of rising inflation expectations. Moreover, the growing sophistication among investors and the availability of more transparent information about inflation-protected securities are further catalyzing market adoption.

Another significant growth factor is the evolving regulatory and investment landscape. Pension funds, sovereign wealth funds, and insurance companies are mandated or incentivized to allocate a portion of their portfolios to inflation-hedged assets, including TIPS. The increasing integration of environmental, social, and governance (ESG) criteria is also indirectly benefiting the market, as TIPS are perceived as lower-risk, government-backed securities that align with responsible investment principles. Additionally, technological advancements and the proliferation of digital trading platforms have democratized access to TIPS, enabling a broader spectrum of investors to participate in this market. These trends are expected to sustain strong demand and deepen market liquidity in the coming years.

Demographic shifts and long-term financial planning needs are further fueling demand for TIPS. An aging global population is prompting greater emphasis on retirement planning, with retirees and pre-retirees seeking stable, inflation-protected income streams. TIPS are increasingly incorporated into target-date funds, retirement portfolios, and annuity products, enhancing their relevance across various life stages. Furthermore, heightened awareness of inflation risk, especially in the wake of recent economic shocks and supply chain disruptions, is spurring proactive portfolio diversification strategies among both retail and institutional investors. This sustained interest is anticipated to underpin the market’s expansion over the forecast horizon.

Regionally, North America continues to dominate the TIPS market, accounting for the majority of global issuance and trading activity. The United States Treasury remains the largest issuer of TIPS, with strong participation from domestic and international investors. Europe and Asia Pacific are witnessing accelerating growth, driven by rising inflation concerns and the gradual introduction of inflation-linked securities in these regions. Latin America and the Middle East & Africa, while smaller in market share, are experiencing increased adoption as part of broader efforts to diversify sovereign debt portfolios and enhance financial system resilience. This regional diversification is contributing to the overall stability and growth of the global TIPS market.

Type Analysis

The TIPS market is segmented by type into Short-Term TIPS, Medium-Term TIPS, and Long-Term TIPS. Short-Term TIPS, typically with maturities of 1 to 5 years, are favored by investors seeking lower duration risk and higher liquidity. These securities are particularly attractive during periods of heightened interest rate volatility, as they offer more frequent opportunities for reinvestment and capital preservation. Institutional investors such as money market funds and

View market daily updates and historical trends for 10 Year Treasury Inflation-Indexed Security Rate. from United States. Source: Federal Reserve. Track e…

United States Federal Debt: PDS: Marketable: T Inflation Protected Securities data was reported at 1,382.288 USD bn in Oct 2018. This records an increase from the previous number of 1,376.426 USD bn for Sep 2018. United States Federal Debt: PDS: Marketable: T Inflation Protected Securities data is updated monthly, averaging 693.766 USD bn from Jun 2004 (Median) to Oct 2018, with 173 observations. The data reached an all-time high of 1,382.288 USD bn in Oct 2018 and a record low of 200.391 USD bn in Jun 2004. United States Federal Debt: PDS: Marketable: T Inflation Protected Securities data remains active status in CEIC and is reported by Bureau of the Fiscal Service. The data is categorized under Global Database’s United States – Table US.F004: Federal Debt.

View monthly updates and historical trends for US Public Marketable Debt Outstanding: Treasury Inflation-Protected Securities. from United States. Source:…

Index Time Series for SPDR® FTSE International Government Inflation-Protected Bond ETF. The frequency of the observation is daily. Moving average series are also typically included. The fund generally invests substantially all, but at least 80%, of its total assets in the securities comprising the index and in securities that the Adviser determines have economic characteristics. The index is designed to measure the total return performance of inflation-linked bonds outside the United States with fixed-rate coupon payments that are linked to an inflation index. It is non-diversified.

Inflation-Linked Bonds Market Outlook

According to our latest research, the global inflation-linked bonds market size reached USD 3.26 trillion in 2024, reflecting robust investor demand amidst ongoing economic volatility and persistent inflationary pressures. The market is expected to expand at a CAGR of 7.1% over the forecast period, with the total market value projected to reach USD 6.04 trillion by 2033. This growth is primarily driven by the increasing adoption of inflation-hedging strategies among institutional and retail investors, as well as rising government and corporate issuances in both developed and emerging economies.

One of the primary growth factors fueling the expansion of the inflation-linked bonds market is the heightened global inflationary environment witnessed over the past few years. As central banks across major economies grapple with persistent inflation, investors are actively seeking instruments that can safeguard their portfolios against the erosion of purchasing power. Inflation-linked bonds, which adjust principal and interest payments in line with inflation indices, have become a preferred choice for both risk-averse and yield-seeking investors. The increased issuance of Treasury Inflation-Protected Securities (TIPS) in the United States and similar products in Europe and Asia has further catalyzed market growth, with governments leveraging these instruments to attract a broader base of investors and manage fiscal risks more effectively.

Another significant driver is the evolving regulatory landscape and the growing sophistication of financial markets. Regulatory frameworks in regions like North America and Europe have encouraged pension funds, insurance companies, and other institutional investors to incorporate inflation-linked securities into their portfolios as part of prudent risk management practices. Additionally, the proliferation of digital trading platforms and online distribution channels has democratized access to these instruments for retail investors, expanding the investor base and boosting overall market liquidity. The integration of advanced analytics and portfolio management tools has also enabled investors to better assess risk-return profiles and optimize their exposure to inflation-linked assets.

Furthermore, the diversification of issuers beyond sovereign governments has played a pivotal role in shaping the inflation-linked bonds market. In recent years, there has been a noticeable uptick in corporate and supranational issuances, as organizations seek to align their debt structures with long-term inflation expectations and investor demand. This trend is particularly pronounced in sectors such as infrastructure, utilities, and financial services, where long-duration liabilities necessitate inflation protection. The expansion of the market’s issuer base not only enhances product diversity but also supports deeper secondary market activity and price discovery, contributing to the overall maturation and resilience of the inflation-linked bonds ecosystem.

Regionally, North America continues to dominate the global inflation-linked bonds market, accounting for the largest share in 2024, followed closely by Europe and Asia Pacific. The United States, with its highly liquid TIPS market, remains the epicenter of activity, while the United Kingdom and Eurozone countries have also witnessed increased issuance of index-linked gilts and bonds. In Asia Pacific, countries such as Japan and Australia are emerging as key growth markets, driven by rising inflation expectations and proactive policy measures. Meanwhile, Latin America and the Middle East & Africa are gradually expanding their presence, buoyed by macroeconomic reforms and efforts to develop local currency bond markets.

Type Analysis

The inflation-linked bonds market is segmented by type into Treasury Inflation-Protected Securities (TIPS), Index-Linked Gilts, Capital Indexed Bonds, and Others. TIPS, issued primarily by the US Treasury, represent the largest and most liquid segment of the market, offering investors a direct hedge against US inflation. The robust demand for TIPS is underpinned by the United States' status as a global economic powerhouse and the high degree of transparency and regulatory oversight in its financial markets. TIPS have become a staple in institutional portfolios, particularly among pension funds and insurance compani

According to a survey conducted in November 2022, the majority of Hungarians limited their expenses in order to protect themselves from peaking inflation rates. At the same time, ** percent of the respondents stated that they took a second job to achieve financial security.

Treasury Inflation-Protected Securities, also known as TIPS, are securities whose principal is tied to the Consumer Price Index. With inflation, the principal increases. With deflation, it decreases. When the security matures, the U.S. Treasury pays the original or adjusted principal, whichever is greater.

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Graph and download economic data for 20-Year 2-1/2% Treasury Inflation-Indexed Bond, Due 1/15/2029 (DTP20J29) from 2010-01-04 to 2025-10-24 about 20-year, TIPS, bonds, Treasury, interest rate, interest, real, rate, and USA.

Inflation-Linked Project Bonds Market Outlook

As per our latest research, the global inflation-linked project bonds market size reached USD 82.4 billion in 2024, reflecting the increasing appetite for inflation-hedged investment instruments amid macroeconomic volatility. The market is expanding at a robust CAGR of 7.1% and is forecasted to achieve a value of USD 153.7 billion by 2033. This growth trajectory is primarily fueled by heightened infrastructure spending, growing concerns over inflationary pressures, and the rising demand for resilient financing mechanisms in both developed and emerging economies. The evolution of inflation-linked project bonds is significantly transforming project financing, providing both issuers and investors with innovative tools to mitigate inflation risks while supporting crucial infrastructure development.

One of the primary growth drivers for the inflation-linked project bonds market is the persistent global inflationary environment, which has prompted both public and private sector entities to seek financing mechanisms that offer protection against the erosion of real returns. Governments and institutional investors are increasingly favoring inflation-linked project bonds as a strategic hedge, particularly in long-term infrastructure projects where cost overruns due to inflation can severely impact financial viability. The ability of these bonds to adjust principal and interest payments in line with inflation indices such as the Consumer Price Index (CPI) makes them an attractive option for projects with extended timelines, such as energy, transportation, and water management. This inflation-hedging feature not only ensures the sustainability of project cash flows but also enhances investor confidence, driving the consistent expansion of the market.

Another significant factor propelling the market is the surge in global infrastructure investment, especially in emerging markets where rapid urbanization and population growth are necessitating massive upgrades in transportation, energy, and social infrastructure. Inflation-linked project bonds are increasingly being utilized to finance these capital-intensive projects, as they provide a stable and predictable return structure for investors, even in volatile economic conditions. The availability of inflation-linked instruments has also enabled governments to attract a broader array of investors, including pension funds and insurance companies, who are seeking long-term, inflation-protected assets. This influx of capital is crucial for bridging the infrastructure financing gap, particularly in regions where traditional funding sources are constrained by fiscal limitations or credit risk concerns.

Technological advancements and financial innovation are further catalyzing the adoption of inflation-linked project bonds. The integration of sophisticated risk management tools, transparent pricing mechanisms, and digital issuance platforms has streamlined the structuring and distribution of these bonds, making them more accessible to a diverse investor base. Additionally, the growing involvement of multilateral agencies and development banks in structuring and guaranteeing inflation-linked bonds has enhanced their credibility and reduced perceived risks, especially in frontier markets. These developments are not only broadening the marketÂ’s geographical reach but also fostering a more competitive and dynamic landscape, encouraging further innovation and expansion.

In the realm of inflation-hedged investment instruments, Treasury Inflation-Protected Securities (TIPS) have emerged as a vital component for investors seeking to safeguard their portfolios against inflationary pressures. TIPS are government-issued bonds that adjust their principal value in line with inflation, as measured by the Consumer Price Index (CPI). This unique feature ensures that the real value of the investment is preserved, offering a reliable hedge against the erosion of purchasing power. The growing interest in TIPS is reflective of the broader trend towards inflation-linked securities, as investors increasingly prioritize stability and predictability in their investment strategies. The integration of TIPS into diversified portfolios is not only enhancing resilience but also aligning with the evolving demands of institutional investors who are navigating complex economic landscapes.

Overview with Chart & Report: 5-Year TIPS Auction represents the percentage yield of Treasury Inflation-Protected Securities having maturity of five years. The difference between the yield of TIPS and that of standard Treasury

Graph and download economic data for Market Yield on U.S. Treasury Securities at 5-Year Constant Maturity, Quoted on an Investment Basis, Inflation-Indexed (DFII5) from 2003-01-02 to 2025-10-23 about TIPS, maturity, Treasury, securities, 5-year, interest rate, interest, real, rate, and USA.

Inflation-Linked Structured Notes Market Outlook

According to our latest research, the global inflation-linked structured notes market size reached USD 92.8 billion in 2024, reflecting the growing demand for inflation-hedged investment products amid persistent economic uncertainty. The market is projected to expand at a robust CAGR of 6.7% from 2025 to 2033, with the total market value forecasted to hit USD 167.1 billion by 2033. This sustained growth is primarily driven by heightened investor awareness of inflation risks, increased volatility in traditional asset classes, and the proliferation of innovative structured note products catering to diverse investor profiles.

One of the primary growth factors fueling the inflation-linked structured notes market is the global resurgence of inflationary pressures, which has compelled investors to seek out instruments that can provide both principal protection and real returns. Central banks across major economies have either maintained or hiked interest rates in response to persistent price increases, prompting institutional and retail investors alike to rebalance their portfolios towards inflation-sensitive assets. Inflation-linked structured notes, with their ability to deliver returns indexed to inflation benchmarks, have emerged as a preferred choice for investors seeking to preserve purchasing power without sacrificing yield. As inflation expectations remain elevated, demand for these notes is expected to remain strong across both developed and emerging markets.

Another significant driver is the ongoing innovation within the structured products industry, which has led to the introduction of more sophisticated inflation-linked notes tailored to specific risk-return appetites. Financial engineers have developed products such as digital notes, callable notes, and zero-coupon variants that offer varying degrees of exposure to inflation, credit, and equity risks. This product diversification has expanded the addressable market, attracting a broader spectrum of investors, from risk-averse institutions to yield-seeking high net worth individuals. Additionally, advancements in digital platforms and distribution channels have democratized access to these products, enabling retail investors to participate in previously inaccessible structured note offerings. This democratization is further supported by improved transparency, regulatory oversight, and investor education initiatives.

The market's growth is also underpinned by the increasing integration of inflation-linked structured notes into institutional investment strategies, particularly among pension funds, insurance companies, and sovereign wealth funds. These entities face long-term liabilities that are highly sensitive to inflation, making inflation-linked products a natural hedge. The growing sophistication of risk management frameworks and portfolio construction tools has allowed institutions to incorporate structured notes more effectively, optimizing their risk-adjusted returns. Furthermore, the entry of non-traditional players such as fintech firms and digital banks into the structured notes market has spurred competition and innovation, enhancing product offerings and reducing costs for end-users.

Regionally, North America and Europe continue to dominate the inflation-linked structured notes market, accounting for a combined share of over 60% in 2024, according to our analysis. This dominance is attributed to the mature financial markets, high levels of investor sophistication, and well-established regulatory environments in these regions. However, the Asia Pacific region is witnessing the fastest growth, driven by rising affluence, expanding capital markets, and a growing awareness of inflation risks among investors. Latin America and the Middle East & Africa are also emerging as important markets, supported by economic reforms and increasing participation of institutional investors. The regional dynamics are expected to evolve further as global macroeconomic conditions shift and regulatory frameworks adapt to new market realities.

Product Type Analysis

The inflation-linked structured notes market is segmented by product type into zero-coupon notes, coupon-bearing notes, callable notes, digital notes, and others. Zero-coupon notes have gained traction among conservative investors seeking inflation protection without periodic income payouts. These notes are typically issued at a discount and matu

View market daily updates and historical trends for 20 Year Treasury Inflation-Indexed Security Rate. from United States. Source: Federal Reserve. Track e…

Inflation-Linked Project Bonds Market Outlook

According to our latest research, the global inflation-linked project bonds market size stood at USD 82.6 billion in 2024, supported by a robust annual growth rate. The market is expected to expand at a CAGR of 7.2% from 2025 to 2033, reaching a forecasted value of approximately USD 155.6 billion by 2033. This growth is primarily driven by rising demand for inflation-hedged investment instruments amid fluctuating macroeconomic conditions, increasing infrastructure investments, and the proliferation of public-private partnership models in both developed and emerging economies.

A major growth factor for the inflation-linked project bonds market is the persistent global inflationary environment, which has led investors and project sponsors to seek instruments that can offer real returns and capital protection. Inflation-linked project bonds, by design, adjust their principal and interest payments in line with inflation indices, ensuring that the real value of returns is preserved. This feature is particularly attractive in periods of economic uncertainty and rising price levels, as it mitigates the erosion of purchasing power commonly associated with traditional fixed-income securities. Furthermore, governments and supranational agencies are increasingly favoring inflation-linked bonds to finance long-term infrastructure and energy projects, recognizing their appeal to a broader investor base seeking inflation protection.

Another significant driver is the burgeoning need for infrastructure development worldwide, particularly in emerging markets across Asia Pacific, Latin America, and Africa. Governments are under immense pressure to upgrade transportation networks, energy systems, and water and waste management facilities to support urbanization and economic growth. However, public budgets are often constrained, prompting the adoption of innovative financing mechanisms such as inflation-linked project bonds. These instruments not only attract institutional investors with a long-term investment horizon but also align the interests of all stakeholders by linking returns to economic variables. The predictability and transparency of inflation-linked bonds make them an ideal vehicle for funding large-scale projects with long gestation periods, thereby fueling market expansion.

Technological advancements and evolving regulatory frameworks are also contributing to the growth of the inflation-linked project bonds market. The digitization of bond issuance and trading platforms has enhanced market accessibility and transparency, reducing entry barriers for both issuers and investors. Simultaneously, regulatory initiatives aimed at promoting sustainable finance and green infrastructure are encouraging the issuance of inflation-linked bonds for environmentally significant projects. As sustainability becomes a central theme in global finance, inflation-linked project bonds are increasingly structured to support renewable energy, climate resilience, and other ESG-linked objectives, further broadening their appeal and driving market growth.

From a regional perspective, North America and Europe remain dominant markets for inflation-linked project bonds, owing to their mature financial markets, stable regulatory environments, and extensive infrastructure needs. However, Asia Pacific is emerging as the fastest-growing region, propelled by rapid urbanization, government-led infrastructure programs, and increasing participation from multilateral agencies. The Middle East and Africa, while smaller in absolute terms, are witnessing steady growth as governments seek diversified funding sources for ambitious infrastructure agendas. Latin America, with its ongoing reforms and infrastructure gaps, also presents significant opportunities. The regional landscape is characterized by varying degrees of market maturity, regulatory sophistication, and investor appetite, shaping the overall growth trajectory of the global inflation-linked project bonds market.

Bond Type Analysis

The bond type segment of the inflation-linked project bonds market is broadly categorized into fixed rate, floating rate, and zero-coupon bonds. Fixed rate inflation-linked project bonds remain a popular choice among conservative investors, as they offer stable returns with principal and interest payments indexed to inflation. This structure provides clarity and predictability, making it attractive for long-term infr

The 30-Year TIPS (Treasury Inflation-Protected Securities) Auction is a U.S. Treasury event where 30-year inflation-indexed bonds are sold to investors.

The 5-Year TIPS Auction in the USA is a government event where the U.S. Treasury issues 5-year Treasury Inflation-Protected Securities (TIPS) to investors.

Graph and download economic data for 10-Year 0.125% Treasury Inflation-Indexed Bond, Due 01/15/2030 (DTP10J30) from 2020-02-20 to 2025-10-24 about TIPS, 10-year, bonds, Treasury, interest rate, interest, real, rate, and USA.