Bond Market in Turmoil: Bank of America Warns of Historic Bear Market

Bank of America analysts have stated that the market for U.S. Treasurys is experiencing the biggest bear market in history, with a decline of almost a quarter since the summer of 2020. This surpasses similar periods in the 19th century. The prolonged bull run in the bond market has come to an end as rising interest rates have led to a significant drop in bond prices. Exchange-traded funds (ETFs) exposed to U.S. Treasurys, such as the iShares 20+ Year Treasury Bond ETF, have been heavily impacted, with losses of up to 50%.