😳 TREASURY-BONDS COLLAPSE IS JUST ONE STEP AWAY TO COME BACK
The collapse in Treasury bonds in 2021-2023 now ranked among the worst market crashes in history.
Since March 2020 to 2023 fall, Treasury long term bonds with maturities of 10 years or more have plummeted over 40% while the 30-year bond had plunged over 50%.
That's just under losses seen in the stock market when the dot-com bubble burst.
The bond rout was worse than the one seen in 1981 when the 10-year yield neared 16%.
The bond-market sell-off that's sending yields soaring is starting to eclipse again some of the most extreme market meltdowns of past eras.
Those losses are nearly in line with stock-market losses seen during the worst crashes of recent history — when equities slumped 49% after the dot-com bubble burst and 57% in the aftermath of 2008.
Compared with previous bond-market meltdowns, long-term Treasurys are seeing one of the most extreme undoings in history. The losses are over twice as big as those seen in 1981 when 10-year yields neared 16%.
That crash came as the former Federal Reserve chair Paul Volcker grappled with historic inflation and pushed the federal funds rate to just under 20%.
While interest rates remain well below that level today, the central bank's aggressive turn toward monetary tightening in the post-pandemic era has caused a similar bond-market rout. And some traders have continued selling amid concerns of rebounding inflation, while a deluge of Treasury issuance this year has also pressured bond prices.
Technical graph for 10-year yield futures
10Y1! indicates that 52-weeks SMA support is still important for further T-Bonds pressure, while 10-year yield (unfortunately to T-Bonds holders) is still following major upside trendlines.
Since March 2020 to 2023 fall, Treasury long term bonds with maturities of 10 years or more have plummeted over 40% while the 30-year bond had plunged over 50%.
That's just under losses seen in the stock market when the dot-com bubble burst.
The bond rout was worse than the one seen in 1981 when the 10-year yield neared 16%.
The bond-market sell-off that's sending yields soaring is starting to eclipse again some of the most extreme market meltdowns of past eras.
Those losses are nearly in line with stock-market losses seen during the worst crashes of recent history — when equities slumped 49% after the dot-com bubble burst and 57% in the aftermath of 2008.
Compared with previous bond-market meltdowns, long-term Treasurys are seeing one of the most extreme undoings in history. The losses are over twice as big as those seen in 1981 when 10-year yields neared 16%.
That crash came as the former Federal Reserve chair Paul Volcker grappled with historic inflation and pushed the federal funds rate to just under 20%.
While interest rates remain well below that level today, the central bank's aggressive turn toward monetary tightening in the post-pandemic era has caused a similar bond-market rout. And some traders have continued selling amid concerns of rebounding inflation, while a deluge of Treasury issuance this year has also pressured bond prices.
Technical graph for 10-year yield futures
10Y1! indicates that 52-weeks SMA support is still important for further T-Bonds pressure, while 10-year yield (unfortunately to T-Bonds holders) is still following major upside trendlines.
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