Bond Carnage: Long-Term Treasury ETF Tumbles To Lowest Point In 16 Years
Portfolio Pulse from Piero Cingari
Long-dated Treasuries are experiencing a significant bear market, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) at its lowest levels since August 2007. The yield on a 30-year Treasury surged above 4.80%, nearing the critical 5% threshold. The ongoing surge in yields has led to a substantial erosion of market value for these long-duration assets. A further increase in the 30-year yield could push the iShares 20+ Year Treasury Bond ETF to the $82.50 level, a 5% decline from current prices.
October 02, 2023 | 9:35 pm
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The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) is at its lowest levels since 2007 due to the ongoing surge in yields. A further increase in the 30-year yield could push the ETF to the $82.50 level, a 5% decline from current prices.
The ongoing surge in yields has led to a substantial erosion of market value for long-duration assets like the iShares 20+ Year Treasury Bond ETF. As the yield on a 30-year Treasury is nearing the critical 5% threshold, this could further push down the price of the ETF.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100