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US Bond Market: 20 Years of Gains Wiped Out in 6 Years Amid Historic Downturn
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CNBC Awaaz•29-09-2026, 07:48
US Bond Market: 20 Years of Gains Wiped Out in 6 Years Amid Historic Downturn
- •The US Treasury market is experiencing one of its worst periods, with the 30-year US Treasury Price Return Index falling by about 60% from its 2020 level.
- •This decline has erased approximately 20 years of gains in just six years, reaching levels last seen around 2000.
- •The downturn is primarily driven by economic uncertainty and spiraling inflation, leading to a sharp jump in US Treasury yields.
- •The 30-year Treasury yield has surged by about 478 basis points from its March 2020 low of 0.71% to around 5.5%, touching 5.55% recently.
- •Rising bond yields are attributed to fears of renewed inflation due to high crude oil prices, Iran-US tensions, and the hawkish stance of some Fed officials.
Key Questions Answered
The historic downturn is driven by economic uncertainty, surging inflation, and rising crude oil prices due to geopolitical tensions like Iran-US friction and Strait of Hormuz concerns, alongside a strong US economy and a hawkish Fed stance.
The 30-year US Treasury Price Return Index has dropped by approximately 60% from its 2020 level down to about 107, wiping out 20 years of gains in just six years and reaching levels last seen around 2000.
The 30-year Treasury yield has climbed to around 5.5%, even touching 5.55% on Monday, while the 10-year Treasury yield is hovering around 5.23% following a sharp rise of about 478 basis points since March 2020.
