The yields on U.S. Treasury bonds appear to be undergoing weeks of uncontrollable ascent, causing ripple effects in financial markets.
The 10-year Treasury yield, a crucial barometer for monitoring the cost of money in global markets, surged above 4.75% on Tuesday, Oct. 3, reaching its highest level since August 2007.
The increase in yields is inversely proportional to bond prices, resulting in the value of Treasuries plummeting to levels not seen in more than 15 years.
The US Treasury 10 Year Note ETF (NYSE:UTEN) registered five consecutive months of losses, declining by over 10% since reaching its peak in March 2023. The iShares 10-20 Year Treasury Bond ETF (NASDAQ:TLH) is trading at the lowest since July 2007.
Longer-dated Treasuries, as tracked by the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), have lost more than half of their value since the onset of the pandemic in March 2020, hitting levels last seen in August 2007.
Chart: 10-Year Treasury Yields Vs. TLH ETF
Rising Treasury Yields Cause Ripples In Global Markets
The implications of rising Treasury yields are far-reaching, casting shadows on everything from stocks to gold. Investors are grappling with trepidation as they witness the fragility of assets exposed to risk and interest rates.
The S&P 500 Index, as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), a ...Full story available on Benzinga.com
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