The 10-year U.S. treasury note went above the 5.00% mark for the first time since August 2006, so what does this mean for exchange traded funds (ETFs)? Jon C. Ogg for 24/7 Wall Street reports the iShares Lehman 20+ Year Treasury (TLT) price moves inversely with the direction of interest rates, so as rates rise, it’s price falls. This intermediate to longer-term maturity ETF is down 5% over the past month. The iShares Lehman 7-10 Year Treasury (IEF) is down 3% for the month.
The 10-year note is also a key for mortgage rates, so this may also add to the drop in housing stocks as well. Average mortgage rates have risen 0.14% this week alone.
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