Should You Invest in a Bond ETF Right Now? Here’s What History Suggests.
Often perceived as a docile, shelter-from-the-storm destination, the bond market isn’t for the faint of heart these days. The 10- and 30-year Treasury yields are residing around the highest levels in 24 years.
With the U.S. national debt standing at $40.3 trillion as of Oct. 7, or roughly seven times Nvidia‘s market capitalization, bond investors are demanding more compensation to buy Uncle Sam’s bonds. Ten-year Treasuries auctioned on Oct. 7 were sold with a yield of 5.3%, the highest since 2000.
High bond yields may be more positive than investors realize. Image source: Getty Images.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.