was just looking at (^TYX) vs TLT over various times from 1 month to 10 years (yahoo finance)....seems like the more recent times TLT is under performing relative to the long term inverse relationship? When I say underperforming...I'm really pointing out the the interest rate has moved further than TLT at shorter time lines. I suppose this also is apparent if holding the bonds directly?
It seems this is the opposite of what had been expected on other threads where concerns raised about the performance of TLT/bonds at low interest rates...the reply being convexity(?) would mean the bonds would appreciate more than enough if rates fell further...if I'm properly conveying the argument.
I'm not concerned about the overall performance of the PP, but I thought it an interesting observation and wonder about what might this mean.
30 year interest rate (^TYX) vs TLT
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Re: 30 year interest rate (^TYX) vs TLT
^TXY is 30-year constant maturity. TLT is something like 17-years duration weighted or probably a bit over 20 maturity.
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Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!