Some people are talking about some long term treasury lost 1/2 of face value. Is that normal since they were bought/aucitoned during Covid years when the interest was really low？
Is there concern interest could go up to say 8%-10% in a few years? 10 year or 30 years treasury bond interest around 4-5% now. I thought the concern now is recession. If so, Fed would cut interest then.
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2020:
- In January 2020 (pre-pandemic declarations), the 10-year yield was around 1.8%
- As COVID-19 concerns intensified in February-March 2020, there was a massive flight to safety
- On March 9, 2020, the yield briefly dropped below 0.5% for the first time in history
- The 10-year yield hit its all-time low of approximately 0.52% in August 2020
- By the end of 2020, rates had recovered slightly to around 0.9-1.0%
2021:
- Rates began climbing as vaccine rollouts progressed and economic recovery expectations grew
- By March 2021, the 10-year yield had risen to approximately 1.7%
