TLT Hits 22-Year Low as 30-Year Auction Yields Spike to 5.216%
TLT is trading near its 52-week low of $81.82 (0.2% above the low).
Summary
TLT traded as low as $81.80 on Friday, down 1.03% on the week and at its lowest level since June 2004. The ETF has now fallen more than 50% from its March 2020 peak above $170. The selloff is driven by rising long-term yields: the 30-year constant-maturity yield rose from 4.91% on June 30 to 5.21% on August 13, and Thursday's $25 billion 30-year auction cleared at 5.216%, the highest auction yield in roughly 25 years. Inflation remains above the Fed's 2% target (July CPI 3.4%, PPI 4.7%), and the Treasury raised its Q3 borrowing estimate to $739 billion, $68 billion above the May projection. Higher long yields raise borrowing costs across the economy and pressure stock valuations. Watch for further auction results and Fed policy signals.
At the time of this announcement, TLT was trading at $82.00 on NASDAQ in the Finance sector. The 52-week trading range was $81.82 to $92.19. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.