The bond market sell-off that’s sending yields soaring is starting to eclipse some of the most extreme market meltdowns of past eras.
Bloomberg reported losses on Treasury bonds with maturities of 10 years or more had notched 46% since March 2020, while the 30-year bond had plunged 53%.
According to Market Insiders, Those losses are nearly in line with stock-market losses seen during the worst crashes of recent history — when equities slumped 49% after the dot-com bubble burst and 57% in the aftermath of 2008.
Compared with previous bond-market meltdowns, long-term Treasurys are seeing one of the most extreme undoings in history. The losses are over twice as big as those seen in 1981 when 10-year yields neared 16%.
Long-duration yields have climbed to their highest since 2007 as a result, with the 30-year note passing the 5% barrier for the first time in decades. Investors expect a similar path for the 10-year, which is hovering at just more than 4.7%.
Well-known investors, including Bill Ackman, Ray Dalio, and Bill Gross see the 10-year hitting 5% in the near term.
