richcano
The sharp drop in Treasury yields in recent days has revived chatter that the worst for the bond market may be over. It’s still early to confidently forecast that scenario, but the odds for recovery are looking better these days after a two-year bear market for much of the asset class following the start of Federal Reserve rate hikes in early 2022.
The performance profile for a wide range of US bond market niches has certainly improved lately, based on 2024 returns. The majority of sectors are now posting gains, led by Invesco Senior Loan ETF (BKLN), which is up 3.3% so far this year.
The caveat is that the year-to-date winners are mostly in low-rated and short-term securities. Meanwhile, red ink still weighs on the longer-term maturities. The steepest loss in the proxy set above is currently in long Treasuries (TLT), which is in the hole by 4% this year.
But it’s encouraging to see that firmer prices overall have trimmed…
