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TLT drops below $82 to a 22-year low on rising long-term yields
The iShares 20+ Year Treasury Bond ETF has also seen assets fall from a $64.5 billion peak to $41.6 billion, ETF.com data show.
Yahoo Finance reports that the iShares 20+ Year Treasury Bond ETF, TLT, fell below $82 per share on Friday, hitting the lowest level in 22 years as investors moved away from long-duration Treasuries.
The article attributes the selloff to higher yields on long-term Treasuries, which have been a steady trend over the past four years. It cites scarcity driven by high demand for capital tied to an AI buildout, as well as higher inflation expectations linked to the war in Iran.
A fixed income strategist at Simplify Asset Management, Jason England, said investors are likely to be risk averse toward longer-term Treasury exposure right now, preferring the front end or intermediate duration rather than extending duration.
The piece also notes that the State Street SPDR Bloomberg 1-3 Month T-Bill ETF, BIL, has outperformed TLT across several timeframes, and it points to a shift away from TLT’s prior role as a diversification vehicle before 2022. It adds that TLT’s assets peaked at $64.5 billion but have since declined to $41.6 billion, according to ETF.com data.