In May 2020, the U.S. government locked in 30-year money at a 1.25% interest rate.
Six years and three months later, it sold $25 billion of new 30-year bonds at 5.216% — the most expensive long-bond auction since 2001, and nearly four times what it paid in 2020.
The price of that repricing shows up in one fund.
The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), the largest fund tracking long-dated U.S. government debt, traded at $81.90 on Friday.
That is the lowest level since June 2004, and roughly 55% below its March 2020 record of $180.
