Soaring U.S. government bond yields sent shock waves across global markets in September. Now, yields have started October by pushing even higher, threatening to upend markets and the economy.
That has Wall Street strategists, including Victor Cossel, a senior macro strategist at Seaport Research Partners, warning that bond-market pain could continue until something changes — or something blows up. As a result, the spread between 2-year and 10-year Treasury yields has reached its narrowest point since May 4, according to Dow Jones Market Data.
3. A popular bond-market ETF fell to a 2007 low The iShares 20 Plus Year Treasury Bond ETF TLT is a popular U.S.-traded bond-market ETF, with nearly $40 billion in assets under management. Enter the 30-year Treasury bond BX:TMUBMUSD30Y issued in the spring of 2020 with a coupon of 1.25%. According to FactSet data, it’s trading at 46 cents on the dollar, the lowest price in its history.
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