The real loss for bond holders
TLT peaked at $179.70 in March 2020 and has lost more than half its value — a decline of 54%. Inflation since then is 29% per the Bureau of Labor Statistics, so the real loss for long bond holders is closer to 65%. TLT holds US government bonds maturing in more than 20 years, so default risk is negligible; the risk is interest rates. With an effective duration of 14.9 years, a one-point rise in yields costs roughly 15% of the price.
Why yields are biting Bitcoin
TLT now yields 5.17% over 30 days, competing directly with non-yielding assets like Bitcoin. That's a direct competition for capital. As bond yields rise, the opportunity cost of holding Bitcoin grows.
The 30-year auction and what's next
Thursday's sale at 5.216% was the highest since
