13-01-2022, 10:44 AM
(This post was last modified: 13-01-2022, 10:47 AM by Corgitator.)
(13-01-2022, 10:33 AM)alchemist Wrote: Bonds have hardly moved with the latest inflation figures out? Why is that?
Since December, TLT is down 7-8%. With yield of 1.5-2.0%, investors in the 20-year treasury bond ETF basically lost around 4 years of coupon over the last two months.
So I wouldn't say that bonds have hardly moved. It's just that markets are forward looking, and whether through real analysis or insider knowledge, the market participants have already priced in the inflation spike even before it's announced officially.