Important Takeaways:
- Long Bonds’ Historic 46% Meltdown Rivals Burst of Dot-Com Bubble
- Losses on longer-dated Treasuries are beginning to rival some of the most notorious market meltdowns in US history.
- Bonds maturing in 10 years or more have slumped 46% since peaking in March 2020, according to data compiled by Bloomberg. That’s just shy of the 49% plunge in US stocks in the aftermath of the dot-com bust at the turn of the century. The rout in 30-year bonds has been even worse, tumbling 53%, nearing the 57% slump in equities during the depths of the financial crisis.
- [In short the last time the yield on 10 year bonds rose to this level was “just before the 2008 financial crisis”]
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