Saturday, March 18, 2023

US Treasury yields have tanked 14% since March 8 amid bank failure fears

The yield curve aggregate averaged 4.674 on March 8. Now it averages 4.017.

Bills yields fell from an average 5.09 to 4.52 in nine days, 11%, after rising 6.5% in the month 2/8 to 3/8.

Notes yields fell from 4.45 to 3.55, a whopping 20%, after rising over 12% in the month after 2/8.

Bonds yields fell from 4.00 to 3.68, 8%, after rising nearly 6% in the month after 2/8.

It's been extremely difficult to trade the volatility. $TLT is up 5.31% ytd., but $AGG is up just 1.99% ytd. It is a fool's errand to invest in bonds when they behave like stocks.

Meanwhile $SPX is up 2.42% ytd.

This is my opinion, not advice.