Here’s why bond yields are rising
When investors pull their money out of stocks and need some place to put it, they often turn to the bond market. U.S. Treasuries are considered essentially risk-free. So investors can park their cash, earn some interest and know their money will be kept safe and sound. As investors moved money from stocks to bonds during the past couple of days, we briefly saw bond yields drop. Remember, yields are measure of the return investors get on money invested in bonds. But that dip aside, bond yields have been steadily rising in the last few months. Here’s why and what that means.
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