The iShares 20-year bond ETF TLT declined 13% from its peak last summer to its low last month.
Uncertainty over the timeline for a resolution in Europe and falling levels in the stock market have also helped drive investors into safe-haven assets like U.S. Treasuries, which has left the 10-year bond today yielding 2.11% and the 30-year long-term bond yielding 3.13%.
FORBES: Even As Treasuries Go Higher, Downgrade Fears Return
Its 30-year bond launch yielding 5.13% saw such strong demand that the deal was re-priced to yield 4bps lower at the final issue.
FORBES: Spreads Widen As Traders Shun Goldman, Morgan Stanley Paper
In a scene that could have come straight from a James Bond movie, on June 13, 1987, a wanted Lebanese Islamic terrorist sped in a motorboat toward an 80-foot luxury yacht 13 miles off the coast of Cyprus.
The fund ranked among the bottom 13% of comparable bond funds for the year.
For the full year, the median core bond manager posted a 6.13% return, 1.9% ahead of the index.
FORBES: With Bond Yields So Low, Why Should You Pay More For Active Management?
The yield on the ten-year bond last closed below 5% on June 13.
In the third quarter, when the stock fund lost a sickening 13.8 percent, the bond fund gained 5.4 percent, so the portfolio as a whole lost only 4.2 percent.
The two-year British gilt yielded 1.62%, adding four basis points from Friday's trading, while the 10-year bond yielded 3.17%, up from 3.13%.
Long-term rates spiked past 13% by 1980, halving the value of some supposedly conservative bond portfolios.
That is why investors have shunned Greek debt to the extent that the 10 year Greek Government bond closed on May 20th 2011 at a yield of 16.73%, which is a spread of 13.66% or 1366 basis points over German 10 year paper.
FORBES: Agonizing In Athens, Loans In Lisbon; Trouble For Euro Zone Ahead
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