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Treasury Market Has Lost a Year of Income in Punishing Week

  • Treasury index lost 1.6% in four days, is down 3.8% this year
  • Inflation expectations soar ahead of Fed meeting next week
Updated on

The U.S. Treasury market just endured one of its worst weeks of the past decade, with yields propelling toward their highest levels of the past year thanks to worsening inflation and an imminent global shift toward restrictive monetary policy.

In four days through Thursday, Treasuries lost 1.6%, wiping out the value of their interest payments over the past year, according to data compiled by Bloomberg. An index of Treasuries is down 3.8% this year, more than in any full year on record in Bloomberg data beginning in 1973.