If Interest Rates Rise, What Happens to Bonds?
If Interest Rates Rise, What Happens to Bonds? Investors in longer-term Treasuries could really be punished. Are bond investors facing the possibility of major losses? Recently, bond yields have climbed. From November 1-23, the 2-year Treasury yield went from 0.83% to 1.12%, while the yield on the 10-year note rose from 1.83% to 2.36%.1 Quality bonds have a place in a portfolio, but many investors are moving their money elsewhere. They see a federal stimulus ahead in 2017, one that [...]