The Bond Bubble: A Warning Sign for Markets The 30 year Treasury yield has surged in recent months, pushing popular long term government bond ETFs like TLT toward levels not seen since before the financial crisis.
As yields rise, prices fall, and investors are getting punished for holding onto these once safest of investments.
The relationship between yields and prices is straightforward: when yields climb, older bonds with lower payouts become less attractive, causing their prices to drop.