Long-bond ETF TLT closes at a record low of $80.46 as the 30-year yield hits 5.40%

The iShares 20+ Year Treasury Bond ETF (TLT), the largest fund that holds long-dated Treasuries, fell 1.58% on Wednesday to close at $80.46, according to Nasdaq. Bloomberg reported that this is a record low for the fund. Nasdaq's price history, which goes back to September 2016, confirms it is the lowest close in at least ten years. The previous low in that period was $80.71 on Sept. 15.

The selling followed a jump in long-term yields. Treasury's daily yield curve puts the 30-year yield at 5.40% on Wednesday, up from 5.29% on Tuesday and the highest close this year. The 20-year closed at 5.45%. The 10-year rose to 5.11% as investors priced in another Fed rate increase.

What the "record low" leaves out

TLT's peak close in the Nasdaq data was $171.57 on Aug. 4, 2020. On that day the 30-year Treasury yielded 1.19%, according to Treasury's 2020 data. Measured by price alone, the fund has lost 53% since then.

The price does not show what holders have been paid. TLT distributes interest every month. Nasdaq's distribution history shows 73 payouts since the peak, totaling $19.27 a share. Add those back without reinvesting them, and someone who bought at the peak is down about 42%, not 53%. That is our calculation. Reinvesting the payouts would change the result somewhat, but it would still be a large loss for a fund made up entirely of Treasury bonds.

The payouts have also grown as yields have risen. Distributions over the past 12 months total $3.89 a share, about 4.8% of Wednesday's price. In the 12 months up to the 2020 peak, the fund paid $2.73 a share, about 1.6% of its price at the time.

Who feels it

Anyone who bought long Treasuries as a safe asset in 2020 or 2021, whether directly, through a fund, or through a retirement or balanced portfolio, has learned that bonds maturing in 20 or 30 years carry large price risk. Over the past year, TLT is down 9.9% on price, from $89.32 on Sept. 23, 2025. With distributions added back, the loss is about 5.6%. Borrowers face the same forces: long-term Treasury yields help set rates on 30-year mortgages and long-term commercial debt.

What traders are watching now is whether 5.40% on the 30-year holds as a ceiling or becomes a new floor. The Fed's October meeting is the next major test. Related: how stocks closed Wednesday and the weak 5-year auction. Chart: 10-year Treasury.

Sources: Bloomberg (record-low report); Nasdaq price and distribution history for TLT; U.S. Treasury daily par yield curve. Return figures are our calculations from closing prices and distributions, not reinvested, and are not the fund's official total return. This is market information, not investment advice.