Tag Archives: 10-year Treasury note
The bond market has been hot as a pistol lately. Since peaking in late June, the yield on the benchmark 10-year Treasury note has plummeted almost 70 basis points, to 4.55% at last night’s close. Meanwhile, the share price of our highly leveraged zero coupon bond fund, American Century Target Maturities 2025, has surged 13%.
August was a good month for stocks. But it was even better for Treasury bonds. A typical long-term T-bond returned a full percentage point more than the Standard & Poor’s 500 index in the month just ended.
Anxiety is building in the bond market — a sure sign that a good buying opportunity isn’t far off.
Traders were greeted this morning with the unpleasant news that import prices shot up 2.3% in September. If that pace kept up for a whole year, we would be looking at a 30% inflation rate in foreign goods. Shivers!
We probably haven’t seen the high in yields just yet. But values are improving in the bond market. Since late October, the yield on the benchmark 10-year Treasury note has bounced from under 4% to 4.34% this morning. That’s a smart 70 basis points above the low reached back in March.