TLT Crashes to 2004 Lows as Inflation Data and Trump's $1.2T Pledge Hammer Long Bonds
TLT is trading near its 52-week low of $80.9 (0.3% above the low).
Summary
TLT fell 1.3% to $81.16, its lowest since May 2004, after August producer inflation came in at 5.4% year-over-year, pushing the 10-year yield to 4.90% and the 30-year to 5.30%. The fund has now erased its entire post-2008 rally, down roughly 55% from its 2020 peak near $180. Adding to the pressure, President Trump pledged a $5,000 dividend to adult citizens if Republicans hold both chambers, a commitment that would cost the Treasury over $1.2 trillion with no funding mechanism. The Treasury's $6 billion buyback of off-the-run securities did little to ease long-dated yields. This follows a series of new lows in August, but today's move is driven by fresh inflation data and a new fiscal risk.
At the time of this announcement, TLT was trading at $81.13 on NASDAQ in the Finance sector. The 52-week trading range was $80.90 to $92.19. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.