US Debt Tops $40T as 30-Year Yield Hits 5.34%, TLT Sinks to 2004 Low
TLT is trading near its 52-week low of $81.17 (1.4% above the low).
Summary
The U.S. public debt crossed $40 trillion for the first time, and the 30-year Treasury yield hit 5.337% on Tuesday, its highest since 2007. That pushed TLT to around $81.35, its lowest close since 2004, down 6.3% year to date. The Treasury is doubling buyback operations for long-dated bonds to at least $4 billion per operation starting Sept. 9, but the underlying supply problem remains. Short-duration ETFs like SHY are being positioned as safer alternatives as fiscal concerns keep long-term yields elevated. This follows a week of TLT setting new 52-week lows and China reducing its Treasury holdings to the lowest since 2008.
At the time of this announcement, TLT was trading at $82.28 on NASDAQ in the Finance sector. The 52-week trading range was $81.17 to $92.19. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.