TLT Drops as Markets Brace for a “Hawkish Cut” From the Fed

Bond ETFs started the week on the back foot as investors positioned ahead of Wednesday’s FOMC meeting. The iShares 20+ Year Treasury Bond ETF (TLT) fell to its lowest level in three months, even with futures markets assigning an 89% probability that the Federal Reserve will cut rates by 25 basis points.TLT, one of the most interest rate-sensitive ETFs on the market, is now up 4.7% year-to-date, down from its October peak, when gains approached 9%. Markets Expect a “Last Cut” Tone The Fed cut rates twice ...