The iShares 20+ Year Treasury Bond ETF (NYSEArca: TLT) fell to its lowest level since 2011 on Tuesday as yields on the 10-year note climbed back above 2.7%.
TLT was down 1.4% to trade below the recent Aug. 1 low of $105 a share. The Treasury ETF is off more than 10% so far this year.
Yields were rising Tuesday following a report that retail sales increased in July, triggering speculation the Federal Reserve may begin tapering its bond purchases.
“The July retail sales are in line with the economists and the Fed thinking –if economic data comes out less than horrendous, we’ll probably end up seeing reduced bond purchases,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC, in a Bloomberg report.
iShares 20+ Year Treasury Bond ETF
Full disclosure: Tom Lydon’s clients own TLT.