FYI: Interest rates are up quite a bit since bottoming in the summer of 2016. Here’s the 10-year yield since then:
his is still a blip on the long-term chart but that’s an increase of almost 2% in a little over 2 years. We finally have that rising rate environment everyone has been clamoring for since 2009 or so.
And as we all know, when interest rates rise…say it with me now…bond prices fall since rates and prices have an inverse relationship.
So the bond funds you own are down. They aren’t getting crushed but they are down.
The Vanguard Total Bond Market ETF (BND) peaked in early September of 2017 (in terms of total return). Here’s what’s happened since then to a number of different bond segments and maturities:
Regards,
Ted
https://awealthofcommonsense.com/2018/10/checking-in-on-bond-market-losses/
