After peaking above 3% around New Year’s Day, yields on the 10-year Treasury bond are around 2.6% currently.
Some investors may not think that a change of 40 basis points is a big deal. But consider that while rates have drifted down, bond investments like the iShares Barclays 20+ Year Treasury Bond ETF TLT +0.63% have marched higher. This fund, which as the name implies owns long-term Treasuries, has added 10% in value since Jan. 1 while the broader market is flat.
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