FYI: What a difference seven weeks makes. That’s how long it took for the U.S. 10-year Treasury yield to reverse from a seven-year high of 3.26% to a 10-month low of 2.73%, a remarkable turnaround that paralleled equally volatile moves in the U.S. stock market.
ETFs tied to bonds and other fixed-income securities were whipsawed just the same, with many swinging from losses to gains—and vice versa—as the volatility in markets played out (bond prices and interest rates move inversely).
With the year now nearly over, fixed-income investors are faced with particularly elevated levels of uncertainty. The decisive breakout in yields during the summer months turned out to be not so decisive after all, with the 10-year Treasury now 0.50% below its highs.
Regards,
Ted
https://www.etf.com/sections/features-and-news/best-worst-fixed-income-etfs-year-0?nopaging=1
