(Replying to PARENT post)

I'm wondering how to interpret this statement: "Long duration bonds have endured their worst drawdown in history." Is she saying something more than "interest rates went up?" Didn't they go up more when Volcker did it in the 1980's?

The graph in the article starts in 2010 and shows prices for an ETF for long-duration treasuries. It seems this is usually charted as market yield, and here's a graph from FRED of 20-year treasury market yields going back to 1953:

https://fred.stlouisfed.org/graph/?id=GS20

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(Replying to PARENT post)

The losses are over twice as big as those seen in 1981 when 10-year yields neared 16%.

https://markets.businessinsider.com/news/bonds/treasury-bond...

A little more detail:

https://awealthofcommonsense.com/2023/10/the-worst-bond-bear...

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(Replying to PARENT post)

When interest rates for new bonds go up, the value of existing bonds go down. This only ever matters if you intend to resell the bond. If you hold it to maturity, you will get the same payout as you agreed to. However, if you try to sell your old bond with 3 percent yield, when bond buyers can go grab a bond with a 5 percent yield, they will pay you a lower price.
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