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Long-dated US Treasury bonds have entered a bull market as markets anticipate a Fed rate cut.
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The iShares 20+ Year Treasury Bond ETF has soared 21% from levels in late October.
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Investors are pricing in hefty rate cuts from the Fed next year as inflation continues to cool.
A bull market has arrived in a key segment of US bonds, thanks to falling yields and expectations for aggressive Fed interest-rate cuts next year.
The iShares 20+ Year Treasury Bond exchange traded-fund ticked higher on Monday to trade around $99 a share. The ETF is now around 21% higher from where it was in late October, when its price had plummeted to a 16-year-low.
By that measure, long-dated US Treasurys have entered a bull market, a sign that falling rate expectations are fueling a major rally in some US government bonds.
Bond prices are inversely related to yields,…
