Bond Market Not Stressing About Higher Yields
The 10-year Treasury yield has seen a strong move higher since September 2017, and recently surpassed its March 2017 post-election highs. A combination of higher global rates (driven by more hawkish central bank expectations), rising growth expectations due to tax reform, and an increase in inflation expectations have been the major forces driving rates higher over the past several months.
Rising rates have hurt bond prices over this period, with the Bloomberg Barclays U.S. Aggregate Treasury Index seeing a loss of 2.3% since the 10-year Treasury yield bottomed on September 7, 2017. The broader bond market has also been affected,... Read more