Traders pile $7 billion into long Treasuries before the Fed
As seen on the 24/7 Wall St. homepage on September 16, 2026.
Traders have staked $7 billion on a long-duration bond bet just hours before the Fed decision, and Bloomberg's ETF analyst says the payoff rarely covers the bleed.
The endless allure of $TLT (the fav ETF of ppl who like to overthink things) in effect as traders pour $7b in ahead of Fed. This thing largely burns cash but once in a while it goes into jackpot mode. Here's clip of @NateGeraci on ETF IQ on why it's just not worth the risk https://t.co/jzw5tZt6lp
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Traders poured $7 billion into the iShares 20+ Year Treasury Bond ETF just ahead of a Federal Reserve decision, a bet that pays off only when long-term yields tumble. Bloomberg's Eric Balchunas says the fund largely burns cash between those rare jackpots, and Nate Geraci argues the risk-reward does not hold up for most investors. Carry drag runs while you wait.
The fund largely burns cash over time, with an occasional jackpot when long-duration rates move sharply in its favor.
ETF analyst Nate Geraci made the case on ETF IQ that the risk-reward profile does not hold up for most investors.
Conviction that large has not historically been rewarded consistently enough to justify the bleed.
Mentioned: TLT