Bond Investing Today
After 32 Years this Bull is Officially Dead
It's been quite a year so far for income hunters, and there's no doubt there will be even more excitement as we near 2014.
There's no doubt U.S. stock investors have done well this year; the broad market Standard and Poor's Index is up 18% as I write.
But for bond investors, it's safe to say the long bond bull market that began in 1981 has ended.
And when a bull with that size tail comes to an end, there are significant consequences for all investors.
Ten-year Treasury bond yields are up from 1.76% to 2.53%. On that basis, by the end of the year, if market behavior repeats itself, 10-year Treasuries could be yielding 3.30%. That has important implications for the U.S. economy, for the Fed and for investors in every sector, in almost every country.
But this bond market bonanza's end isn't a shocking development.