{"id":5972,"date":"2021-01-20T09:18:59","date_gmt":"2021-01-20T14:18:59","guid":{"rendered":"https:\/\/billlosey.com\/?p=5972"},"modified":"2021-01-20T09:18:59","modified_gmt":"2021-01-20T14:18:59","slug":"outlook-2021-bond-prices","status":"publish","type":"post","link":"https:\/\/billlosey.com\/knowledge-center\/outlook-2021-bond-prices\/","title":{"rendered":"Outlook 2021: Bond Prices"},"content":{"rendered":"\n<p><em>Information you should know.<\/em><\/p>\n\n\n\n<p>The 10-year Treasury yield has climbed higher since the New Year, which means that some bond prices are dropping. You may have seen the headlines that say, \u201c10-Year Yields Over 1%.\u201d<\/p>\n\n\n\n<p>For some, the first time they experience a change in bond prices is when they open their monthly statement and review their investments.<\/p>\n\n\n\n<p>But before you check your January statement, here is some background that may help put the most recent move in rates in perspective.<\/p>\n\n\n\n<p>The interest rate on the 10-year Treasury dropped steadily in the first half of 2020 and bottomed at 0.54% in late July. While rates remain at historic low levels, the yield on the 10-Year Treasury has doubled in the past six months. That\u2019s a significant increase in a relatively short period of time. The recent rally that pushed the yield over 1% has drawn the most attention.<sup>1<\/sup><\/p>\n\n\n\n<p><strong>Why are rates going higher?<\/strong>&nbsp;Even with the Federal Reserve holding short-term rates near zero, yields on longer-term bonds can move higher as the economy begins to improve and inflation expectations rise.<sup>2<\/sup><\/p>\n\n\n\n<p><strong>Will bond yields keep going higher?&nbsp;<\/strong>A lot may depend on the path of the virus, vaccine distribution, and what\u2019s next with additional stimulus money.<sup>3<\/sup><\/p>\n\n\n\n<p>Bonds can play an important part in any portfolio, but like any investment, periods of volatility are expected. If you\u2019re concerned about the outlook for bonds, or the macro-economic trends behind the bond market\u2019s rally, please give us a call. I\u2019d welcome the chance to hear your perspective, and hopefully, can provide some guidance.<\/p>\n\n\n\n<p><strong>Citations<\/strong><strong><\/strong><\/p>\n\n\n\n<p><em>1.\u00a0<a href=\"http:\/\/finance.yahoo.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Finance.Yahoo.com<\/a>, January 18, 2021<br>2. CNBC.com, January 12, 2021<br>3. CNBC.com, January 7, 2021<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Information you should know. The 10-year Treasury yield has climbed higher since the New Year, which means that some bond prices are dropping. You may have seen the headlines that say, \u201c10-Year Yields Over 1%.\u201d For some, the first time [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18],"tags":[],"class_list":["post-5972","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/5972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/comments?post=5972"}],"version-history":[{"count":0,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/posts\/5972\/revisions"}],"wp:attachment":[{"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/media?parent=5972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/categories?post=5972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/billlosey.com\/knowledge-center\/wp-json\/wp\/v2\/tags?post=5972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}