TLT Down 52% From Peak: How Safe Government Bonds Lost Half Their Value

The TLT fund, which holds long-term U.S. government bonds, trades at $81.91 — about 52% below its all-time high (Benzinga, Aug 14, 2026). These bonds are backed by the U.S. government, so there's no risk of default. The loss comes from a simple rule: when interest rates rise, existing bond prices fall. The longer the bond, the harder the fall.