Long-duration U.S. Treasury bonds have experienced their worst 10-year returns since before World War II, with annualized losses of about 2%. This decline was driven by rising interest rates starting in 2022 after a period of historically low yields during the pandemic. While bond prices fell, the resulting higher yields now offer new investors better income potential and a more attractive risk-reward balance. Despite risks if inflation rises again, this downturn may mark a generational buying opportunity for fixed-income portfolios.
The analyst maintains a buy recommendation on long-term bonds IEF and TLT, citing a cooling economy with declining manufacturing activity and new orders. Inflation is expected to ease, driven by AI-related cost savings and anticipated energy price re...
Norway's Government Pension Fund Global, the world's largest sovereign wealth fund, proposed gradually reducing its $80 billion exposure to long-term U.S. Treasuries starting in 2027. This move raises questions about the future value of the iShares 2...
