Bonds
Long Bonds’ Historic 46% Meltdown Rivals Burst of Dot-Com Bubble
- Duration exposure fuels painful losses for long-end investors
- Thirty-year yields hit 5% Wednesday for first time since 2007
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Losses on longer-dated Treasuries are beginning to rival some of the most notorious market meltdowns in US history.
Bonds maturing in 10 years or more have slumped 46% since peaking in March 2020, according to data compiled by Bloomberg. That’s just shy of the 49% plunge in US stocks in the aftermath of the dot-com bust at the turn of the century. The rout in 30-year bonds has been even worse, tumbling 53%, nearing the 57% slump in equities during the depths of the financial crisis.