With higher interest rates across the board, U.S. Treasuries, measured by the Bloomberg U.S. Treasury index, have lost 2.5% this year. If this holds, this would be the first negative return since 2013.
U.S. Treasuries' return falls into the red
Examining longer-term Treasury yields, they stand 39 basis points to 68 basis points higher than at the start of the year. While the 1-year yield remains the same at 0.1%, the 3-year yield was recently at 0.55% and the 30-year yield was 2.08%.
While the index's maturity spectrum is spread out, 56% is weighted with securities maturing within five years, based on the SPDR U.S. Treasury Bond ETF, as of Aug. 31.
Forecasters expect yields to continue rising through the end of 2023. They predict the 5-year, 10-year and 30-year yields to increase by 72 basis points, 83 basis points, and 80 basis points, respectively, to 1.71%, 2.36%, and 2.88%.