The US bond market just set a record nobody wanted. As of July 1, 2026, the drawdown in the Bloomberg Aggregate Bond Index has stretched to 71 months, the longest decline in the history of recorded bond market data.

That’s nearly six years of bonds failing to recover their August 2020 peak.

Six years of going nowhere

Charlie Bilello, Chief Market Strategist at Creative Planning, has been tracking the drawdown’s progression. He noted the decline extended from 67 months in March 2026 to the current 71-month mark.

The previous longest nominal bond drawdowns were all shorter than what investors are living through right now. And while historical real drawdowns, adjusted for inflation, have lasted even longer (think the 1940s-to-1980s slog), those used different measurement methodologies. In nominal terms, this is uncharted territory.

Post-COVID inflation forced the Federal Reserve into an aggressive tightening cycle. Yields on 30-year Treasurys have surpassed 5% in 2026, levels not seen in decades. When yields rise, bond prices fall. Government deficits have added fuel to the fire. More borrowing means more bond supply hitting the market, which pushes prices down further.

The 60/40 portfolio’s identity crisis

Bonds have contributed negatively or remained flat in 60/40 portfolio performance since 2020. The S&P 500 has significantly outperformed fixed income over this period.

There’s also the yield curve to consider. Inversions, where long-term rates fall below short-term rates, have haunted the bond market during this period and historically signal economic slowdowns.

What this means for crypto investors

The bond market’s six-year hangover doesn’t exist in a vacuum. Recent reports indicate that the bond market’s volatility affects crypto asset values, although no direct linkages were fully established. The relationship is mediated by broader macroeconomic factors that shape investor sentiment.