BlackRock’s fixed income chief, Rick Rieder, says the Treasury market is making history before our eyes.
In a tweet on Thursday, Rieder noted an index tracking the performance of long-dated Treasurys had fallen more than 20% from peak to trough, meeting the widely accepted definition of a bear market. That drawdown was unmatched in the last four decades. This comes after the 10-year Treasury note yield TMUBMUSD10Y, 1.722% touched 1.75% this week, and the 30-year bond yield TMUBMUSD30Y, 2.446% flirted with 2.50%, with both levels considered as key lines in the sand for long-dated government bonds. Bond prices move in the opposite direction of yields.
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