The Bond Market Is Flashing a Warning Signal to Investors. Here's What Comes Next.
One of the most-watched Treasury bond yields is higher than it's been since 2007. Should you sell everything, or stay the course?
Overview
The 30-year Treasury yield has recently spiked to over 5.2%, reaching its highest level since 2007. When bond yields rise, bond prices go down. Higher yields might be tempting for new bond buyers, but they're bad news for investors who already own bonds. And long-duration bonds like the 30-year Treasury are at particular risk for higher interest rates. The longer a bond's duration, the harder its price is hit by rising yields.
30 Year Treasury Rate data by YCharts
Details
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.