The long term bond market has been in a massive rally (decline in yields) for the past 10+ years.
Yields hit record lows in late 2017 before moving up of late/
- With yields near record lows
- The Federal Reserve in tightening mode for the first time since the unusual measures of easing after the financial crisis, s
- Some hints of inflation,
- And a massive increase in the Federal deficit and government borrowing needs
10 year Treasury bond yields...(prices move inversely to yield)
It's also hard to see how any rational long term investor would have accepted yields on long term Treasury bonds locking in a rate of 2.25% or less. Which means many of the buyers of these bonds were buying them as trading positions including leveraged positions.
Price graph of the Ten Year Treasury Bond ETF (TLH) for the past ten years. It has been virtually a one way bet since the Fed reserve started its quanitative easing after the financial crisis. Not hard to see that a reversal of Fed policy would create violent changes in price.