I have some issues about understanding the variation of bond ETFs like TMF or more precisely its underlying ICE 20+years Treasury Bond Index :
1 - I often hear that bonds vary with interest rates but when I compare ICE Treasury Bond and FED rates I don't understand the link. The first two rise of rates didn't have the same impact on bonds that the current rise, why? Is this because of the speed of the current rise?
Rates : https://www.imagebam.com/view/METAM68
ICE Treasury Bond : https://www.imagebam.com/view/METAM6D
2- Does long term bonds have a intrinsic growth on the long run (similar to stocks)? I would have thought that ETFs like ice had an interest in keeping them for the dividends that come from coupons but it seems to have had slow growth too since 2002. Is this juste particular to this 2000-2024 period?
These might be stupid questions but I'm not very familiar with bonds![:?]( "Confused")
1 - I often hear that bonds vary with interest rates but when I compare ICE Treasury Bond and FED rates I don't understand the link. The first two rise of rates didn't have the same impact on bonds that the current rise, why? Is this because of the speed of the current rise?
Rates : https://www.imagebam.com/view/METAM68
ICE Treasury Bond : https://www.imagebam.com/view/METAM6D
2- Does long term bonds have a intrinsic growth on the long run (similar to stocks)? I would have thought that ETFs like ice had an interest in keeping them for the dividends that come from coupons but it seems to have had slow growth too since 2002. Is this juste particular to this 2000-2024 period?
These might be stupid questions but I'm not very familiar with bonds
Statistics: Posted by Quentinvestisseur — Tue Apr 30, 2024 6:24 am — Replies 14365 — Views 2037441