In spite of the Fed's QE2 program and desire to push down interest rates, the longer end of the curve is seeing a big jump in yield. The first chart below displays the price action of the iShare 20-year Treasury Bond (TLT). The price of TLT has declined from a high of over 108 down to yesterday's close of 94. This represents a 13% price decline. The yield moves in the opposite direction of price and the second chart displays the change in yield of the 20-year Treasury. At the end of August the yield on the 20-year treasury stood at 3.23% and closed yesterday at 4.01%. This represents a 24% rise in the yield.
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| From The Blog of HORAN Capital Advisors |
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| From The Blog of HORAN Capital Advisors |
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