TLT ETF Outflows Rise as Bond Vigilantes Push US 30-Year Treasury Yields to 5.26% – iShares 20+ Year Trea
TLT ETF Outflows Jump as US Bond Yields Soar
Investors sold their TLT ETF holdings this week as concerns about the bond market continued after the Federal Reserve interest rate decision. ETF Db data shows that the fund had over $75 million in outflows on Friday after shedding $277 million a day earlier.
Most outflows happened on Wednesday when the fund lost over $477 million in assets. It ended the week with over $41 billion in assets, with its daily volume soaring to over $50 million on Friday.
US bond yields have jumped in the past few days, with the 30-year ending the week at 5.26%. It peaked at 8.28%, its highest level since 2007, and much higher than the year-to-date low of 4.6%. Similarly, the ten-year yield jumped to 4.75%.
The surge accelerated after the Federal Reserve left interest rates unchanged, with three officials voting to hike. At the same time, the US and Iran resumed their kinetic action, pushing crude oil prices higher. As a result, Polymarket traders predict that the Fed will hike interest rates later this year, with odds rising to 68%.
There are also concerns about the rising US public debt, which has surged under President Donald Trump. Treasury Department data shows that the debt has jumped to over $39.8 trillion, and this trend will continue as deficits soar. As such, the rising US yields is a sign that the so-called bond vigilantes are pushing back.
iShares 20+ Year Treasury Bond ETF Crossed Key Support
The TLT ETF has been in a strong downtrend in the past few months, and this week, it dropped below the crucial support level of $83.3, its lowest level in May 2023 and May 2026. It was the lower side of the descending triangle pattern, a common bearish continuation sign.
The fund remains below all moving averages, while the Average Directional Index (ADX) has jumped to 19.5. That is a sign that the downtrend is gaining momentum. If this happens, it may drop to the psychological level of $75.
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