Treasuries Got Bernanke'd: 3 Years Gone In 3 Weeks

Tyler Durden's picture

Via Alex Gloy of Lighthouse Investment Management,

US Bond market:

Over the last three weeks, 10-year US government bond yields increased from under 1.4% to 1.85%...

 

while 30-year went up from 2.44% to 2.96%...

 

To put things into perspective: Here are those movements on a longer time scale (together with 5-year yields, blue, and the 3-months yield, yellow):

 

And this is what this “minor” increase in yields does to long-term bonds:

 

The 20+ year Treasury bond ETF (TLT) declined 8.2% from the top. That's more than three years worth of interest, gone in just three weeks.

Yes, there is a flip side to central bankers artificially depressing bond yields. And you thought you were smart, not falling for Bernanke’s siren songs to push you into "risky" investments.