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Treasury Bondholders Look for Reprieve From Worst Loss on Record

  • With aggressive rate hikes priced in, market may steady
  • Path hinges heavily on the outlook for inflation, growth
Updated on

Treasury bondholders are hoping for a reprieve after the most brutal three months of modern times.

The swift selloffs that ripped through the market as traders braced for a more aggressive series of interest-rate hikes from the Federal Reserve hit investors with a loss of 3.1% in March, Bloomberg’s index shows. That’s the steepest monthly drop since 2004 and caps the worst quarter for Treasuries since the index starts in 1973, surpassing the rout seen when the central bank was fighting a wage-price spiral in 1980. Even inflation-adjusted Treasuries, which have served as a haven, have lost 2.7% since the start of the year.