Persistent inflation pressure is weighing on long-maturity U.S. government bonds, underscoring how higher-for-longer rate expectations have erased two decades of gains at the far end of the curve.
BlackRock’s long-dated Treasury ETF has dropped to its lowest level since 2004, as persistent inflation continues to pressure the long end of the U.S. yield curve. The move highlights how expectations for interest rates to stay elevated have hit longer-maturity government bonds especially hard, reversing roughly two decades of gains in that segment of the market.