Rising Rates Don’t Negate Benefits of Bonds

“The yield of the 10-year U.S. Treasury note rose more than 100 basis points (1 percentage point) from August 2020 through late March 2021. Rates also climbed for other government bonds, including those issued by the United Kingdom and Australia. Because bond prices fall as rates rise, and vice versa, some investors are feeling jittery about the near-term risks of bonds.” Continue reading expert perspective by Vanguard America’s Chief Economist, Roger Aliaga-Díaz.

(Source: The Vanguard Group, Inc.)
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