The 10-year U.S. Treasury bond is on track for three straight years of losses.
The back-to-back recession represents the longest losing streak since 1787, according to Bank of America.
US Treasury bonds have suffered their worst annual losses since 1788.
Our chart of the day is from Bank of America And U.S. Treasury bonds are headed for their longest losses since 1787.
The US 10-year Treasury is on track for its third consecutive annual loss. 10-year bond It fell 3.9% in 2021, and 17% in 2022, the worst annual loss since 1788. So far this year, it’s down 0.3%.
“The 10-year Treasury’s third consecutive loss … has never happened in the 250-year history of the US republic. It reflects a 40% jump in US gross domestic product (growth + inflation) starting in 2020,” BofA investment strategist Michael Hartnett noted Friday. Lai said.
The pain in bonds has been driven by interest rate hikes from the Federal Reserve. Starting in March 2022, the Fed has raised interest rates 11 times, raising the effective fed funds rate from 0% to over 5% today. When interest rates rise, bond prices fall, which is why bonds have underperformed.
Despite prolonged pain in fixed income, investors poured $1.7 billion into bonds this week, representing the 23rd straight inflow, according to BofA.
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