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That still leads to losses on long term treasuries. That's what it means to raise rates.
by wbl 4y ago
That still leads to losses on long term treasuries. That's what it means to raise rates.
- mitthrowaway2 4y agoYes, of course it does. But there are losses, and then there are losses. 10-year yields going from 1.56% in 2021 to 4% in 2023 is equivalent to a price drop of 17% (given maturity in 2031). If 10-year yields had only been, say, 3% in 2021 before rising to 4%, the bond price drop would have been closer to 7%.