One long-duration Treasury bond ETF has surged nearly 9% in just four trading sessions, a performance that mirrors rallies last seen during the 2020 pandemic panic and the deflationary scare of August 2024.
The PIMCO 25+ Year Zero Coupon U.S. Treasury Index ETF (NYSE:ZROZ) jumped 8.8% between Sept. 3 and Sept. 8, fueled by a dramatic drop in Treasury yields after a shockingly weak U.S. jobs report reignited bets on imminent Federal Reserve rate cuts.
On Sept. 6 alone – the day of the jobs report – the fund soared 2.7%, one of its strongest daily gains of 2025.
By contrast, the SPDR S&P 500 ETF Trust (NYSE:SPY) added only 1.3% over the same period, underscoring a rare and decisive outperformance by bonds over equities — a phenomenon not commonly observed since the pandemic.
Why Is ZROZ Rallying So Hard?
The jobs report for August drastically reshaped market expectations. Only 22,000 jobs were added, while prior months were …