The Bond Market Is Doing Something That Hasn't Been Observed in Nearly 20 Years. Should Investors Be Nervous?
The yield on the 30-year Treasury bond recently reached its highest level since before the Great Recession. Is this a sign of a looming debt crisis or a stock market crash?
Overview
Interesting things are happening in the bond market, and "interesting" does not mean good news for bond investors. The yield on the 30-year Treasury bond recently rose to its highest level since 2007. As of this writing, the 30-year Treasury yield is about 5.172%, up about 65 basis points from its 52-week low.
Some bond investors are worried that U.S. government borrowing has become unsustainable, and are demanding higher yields on long-term government debt.
Details
How nervous should you be about higher yields on the 30-year Treasury bond? At the moment: not very. Let's look at what's happening in the bond market and see what it might mean for your investments.
Source
Originally published at www.fool.com.