Long-term U.S. treasuries were pushed lower Tuesday as the ouster of Federal Reserve Gov. Lisa Cook by President Donald Trump fueled uncertainty regarding the independence of the central bank and monetary policy direction.
The 30-year Treasury yield climbed as high as five basis points to 4.94%, and now the spotlight is on ETFs that track long-term government debt.
TLT is in focus amid Trump’s Fed crackdown. Check its prices live, here.
Some of the most vulnerable are the iShares 20+ Year Treasury Bond ETF TLT, the Vanguard Extended Duration Treasury ETF EDV and the PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF ZROZ, which experience steep price movements when yields increase.
TLT, a retail and institutional bond investor bellwether, usually declines when long-term rates increase. On Tuesday, all the three funds were in the red.
The drama follows Trump’s intensifying campaign to remove Cook, and her subsequent firing, after…
