Treasury Loss? You’re Also Paid Back in Depreciating Dollars
The decline of the real dollar’s value when inflation is elevated is an additional kick in the shins to those holding Treasuries
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Selloffs in Treasuries are compounded by the real loss in the purchasing power of the dollars they are denominated in.
US Treasuries are in the midst of their worst drawdown, or peak-to-trough decline, for at least half a decade, with the Bloomberg Treasury Index down over 17% from its peak.