Long-Term Treasury Bonds Suffer Historic Losses Amid Fed Rate Hikes, But Some Bonds Hold Steady

Treasury bonds are experiencing one of the worst bear markets on record, with long-term bonds down over 40% from their peak.

Some areas of the bond market like bank loans, short-term junk bonds, and floating-rate notes are holding up relatively well so far in 2023.

The biggest losses are concentrated in long-dated Treasuries, with the 20+ year Treasury ETF down nearly 12% this year.

Fed policy and economic resilience will determine if and when the pain ends for long bonds.

Signs of economic slowdown could bring a reprieve for long-dated Treasuries.