The US Treasury Market Hasn't Been This Cheap in Decades: Here's Why - iShares 20+ Year Treasury Bond ETF

U.S. long-term Treasuries have become markedly cheaper again, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) trading at $81.90 on Friday—its lowest level since June 2004 and about 55% below its March 2020 record around $180. The shift reflects repricing after the Treasury sold $25 billion of new 30-year bonds at 5.216% on Thursday, the most expensive long-bond auction since 2001. The yield tail was small, but demand was only serviceable: the bid-to-cover ratio was 2.392 and indirect bidders took 66.8%. Even after July inflation came in cooler, long yields rose into and held through the auction.