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Why are bonds performing so poorly over the last two weeks?

I noticed that the ETF and TLT has dropped rather drastically. Is this an overreaction?

Bonds / Fixed Income
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November 2016

I don't think it is an overreaction. Bond prices run inversely to interest rates. As interest rates go up, bond prices are going to go down. When you look at a bond or a bond fund, you should always keep an eye on the duration. TLT is a fund that owns 20+ year Treasury bonds. The average maturity is 26.41 years. The duration is 17.9 years. That means for a 1% increase in long interest rates, the fund will drop in value by approximately 17.9%.

Since the election, long interest rates have been rising.  If interest rates keep going up, TLT will continue going down in price.

Hope this helps.

November 2016
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