Bond ETFs Look Dangerous as Interest Rates Rise | ETF Trends

Last week marked the 15th straight increase for interest rates since June 2004.  With the continued rise, bond exchange traded funds have not held up as well as most of their equity counterparts.  iShares Lehman 1-3 Year Treasury Bond (SHY) was up 0.3% for the first quarter of the year and has a current yield of 3.3%.  iShares Lehman 7-10 Year Treasury Bond (IEF) was down 2%, with a yield of 4.0%, and iShares Lehman 20+ Years Treasury Bond (TLT) was down 4.7% with a current yield of 4.8%.

As with other ETFs, the 200-day moving average is a good indicator to know when to get in and out of a holding.

Tlt

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.