Initial market reactions are also muted. Historically, short-lived shutdowns have had minimal economic impact, Messi say. The 10-year Treasury yield rises 0.6 basis points to 4.515%, according to Tradeweb. (emese.bartha@wsj.com)
Maybe I don't understand what they are yammering about. Yahoo Finance right now has 4.15%.
One basis point is 0.01%. So 0.6 basis points is 0.006%, IOW nothing.
I couldn't find anything on Tradeweb but I didn't look real hard.
Rising bond yields means lower bond values/prices.
The overwhelming consensus of financial planners and financial pundits is to have a substantial allocation to bonds (and other fixed income) in a mixed stock-fixed income portfolio, especially for those near, or in retirement, and maintain that allocation no matter what the market does or what one thinks it will do. Bonds have done horribly since 2021. The last I checked, their
cumulative total returns over the last 4 years were generally single-digit positive, but far from keeping up with inflation (more than 20%
cumulatively).
While it's nice that new bonds that we may buy have higher interest rates, those of us with substantial bond portfolios see those portfolios sink in inflation-adjusted value (purchasing power) as intermediate-term and longer-term interest rates rise.
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