Bond Market Turmoil: Record Trading Frenzy and Durable Funds Shield Investors

The iShares 20+ Year Treasury ETF (TLT) experienced a surge in trading volume this week as rising Treasury yields rattled the bond market. The ETF, heavily weighted towards 30-year Treasury bonds, has seen its price decline 14.8% year-to-date. Despite the selloff, TLT has attracted significant inflows, with $18 billion coming in so far this year. Yields on 30-year bonds reached their highest levels since July 2007, while the 10-year yield approached the 5% threshold, causing concern among investors. The rising yields have led to losses across the bond market, with TLT and other popular corporate-bond ETFs on track for their biggest weekly declines of the year. Treasurys are currently experiencing a historic bear market, with prices expected to fall for a third consecutive year in 2023.