Floating-rate bonds are supposed to be sailing right now. So why are they sinking ? Last week we lamented the reason most bond funds are down this year . The runaway long rate is to blame. Ten-year Treasury bonds began the year yielding 1.5%. Now, they pay 2.4%, a whopping 60% more in a quarter! Nobody wants the 1.5% vintage when they can “level up” to 2.4%. So the old 1.5% bonds, while still paying their coupons, lose value. So do funds that own Treasuries. The iShares 20+ Year Treasury Bond ETF (TLT) , one of the most popular bond tickers on the planet, is down 10% year-to-date.… Read more