10-Year Yield hits 5%, stock market panics
US 10 Year Yield hits 5.0%, a level not seen since mid 2007. This likely cements the fate of existing bond-hodlers, which have seen 3 years of declines. How high will the US 10 year yield go, nobody knows, this likely markets the near bottom for bonds, and likewise bond ETFs like the iShares 20 Year+ Treasury ETF (Ticker symbol TLT).
TLT at a 5-year low
Current div yield on TLT (trailing twelve months) stands at 3.98%, although one has to factor the 30% withholding tax for non-US treaty nationals.
Probably one of the simpler ways to get involved in the bond market.
Other alternatives are to buy bonds from a broker that has access to U.S. treasury bonds. However do note that for U.S. Treasury Bonds longer than 1 year duration have 30% dividend/interest tax, so the yield you are getting will be less 30%, eg 5% yield minus 30% tax implies an effective yield of 3.5%. Alternatively, one can consider buying US Treasury bills (less than 1 year) and still get around 5%, which do not have dividend tax.
$iShares 20+ Year Treasury Bond ETF(TLT)$ $S&P 500(.SPX)$ $Invesco QQQ Trust-ETF(QQQ)$
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Thank goodness I stumbled upon your article! I'm going all in on shorting TLT at that rock-bottom $80.xx level! 📉💪
我同意你所说的一切，但我仍然很乐意购买TLT，因为它创下了新低。以及新发行的短期国债。TLT在我的投资组合中只占很小的百分比，如果它下跌，我会很乐意买入更多。没有人知道这个紧缩阶段将如何结束，有股票崩盘和债券反弹的情况。尽管我仍然持有大量股票，但我觉得在几十年低点购买债券比在接近顶部的股票更好。谢谢，祝你好运。
More sellers than buyers and low volatility. TLT has not made any upward meaningful moves. The calls should be free because they are low risk.🥂
Umm... As long as the Fed keeps raising interest rates the TLT is going down. Bond prices are inversely related to interest rates
Anybody have any data on short interest for the bond market? I imagine it is at extreme levels.