The Treasury Bond Massacre and the Spike to 5% Mortgage Rates: This is All Going Very Fast | Wolf Street

The bond massacre in dollars. Market prices of bonds with long remaining maturities get ravaged when interest rate rise.

For example, the price of the iShares 20 Plus Year Treasury Bond ETF, which holds Treasuries with maturities of 20 years and longer, fell 1.4% on Friday to $128.66. This was down 25% from the peak at the end of July 2020. The 40 years of bond bull market have lulled people to sleep about the risks of bond funds.

This massacre is playing out with Treasury securities and with investment-grade corporate bonds, particularly the highest-rated corporate bonds that closely track Treasury securities.

The Treasury Bond Massacre and the Spike to 5% Mortgage Rates: This is All Going Very Fast | Wolf Street