SPDR Portfolio Long Term Treasury ETFNYSE American: SPTL

SPTL has declined by nearly 40% due to rising treasury yields and inflation. SPTL's sensitivity to rate changes caused a 41% decline, but easing inflation and weakening economy may lead to a rebound. The lower rate environment and potential economic recession make it a good time to own SPTL, with potential price returns of over 20%.

Last week's spike in Treasury yields has further dragged on the SPDR Portfolio Long Term Treasury ETF's performance. With the higher yields coming on the heels of a rating downgrade and an accelerated issuance outlook, the move seems justified. As appealing as SPTL's higher yields might seem, the prospect of more cheapening pressure means investors might be better off sitting this one out.

The UK 10-year Gilt's mid-yield rose 45 basis points over the month to finish at 4.17%, after closing as high as 4.36% on May 25. In the euro area, most 10-year government bond yields saw relatively muted movements during the month, with only those for Greece bucking the trend with a drop of 43 basis points to 3.64%.