iShares 1-3 Year Treasury Bond ETF

SHY

Börsenwert 26,9 Mrd. $

Treasury yields are punishing bond investors in ways not seen since the nation's founding debt crisis, and the fallout reaches well beyond Wall Street into mortgage rates, retirement portfolios, and the federal government's own borrowing costs.

Bonds are paying the best yields in years and still dragging portfolios into the red, leaving investors scrambling for a defensive asset that actually defends. A growing group of Wall Street managers thinks the answer involves shorting Treasuries outright.

U.S. bond yields are rising, providing an increasingly attractive alternative to pricey stocks. Trump's unorthodox policy may be causing this trend to accelerate.

US Treasury yields may ‌have further room to rise, with the Federal Reserve likely ​to deliver one or ​two more rate increases before ⁠the current tightening cycle ends, ​Dan Ivascyn, chief investment officer ​at the world's largest bond manager, told Reuters on Tuesday.

The global competition for capital remains the key dynamic keeping yields elevated. Notably, all of the September increase in 10-year Treasury yields came from real yields, as implied by the TIPS market.

US Treasuries resumed their retreat, lifting the 30-year yield back to its highest since 2002 as climbing oil prices raised concern about faster inflation and more central bank interest-rate increases. Vishal Khanduja, Head of Broad Markets Fixed Income at Morgan Stanley Investment Management, discusses credit spreads and whether or not yields will soon peak.

Japan, Europe, and the U.S. were feeling the fallout from France, where yields on its benchmark 10-year note climbed closer to 5%, the highest since 2002.

BND has lost ground in price for five years straight, yet something has quietly shifted inside the fund that changes what the next five years could look like for anyone holding it today.

Rolling coverage of the latest economic and financial news

Supply chains that transform crude into fuel are still under siege, and that is keeping prices high—helping drive a brutal bond selloff.