As yields rise and prices fall, what's a bond investor to do?

Consider laddered portfolios, shorter maturities and floating-rate products.

Andrew Hepburn 20 February, 2018 | 6:00PM

Bonds are selling off. What's an investor to do?

For decades, interest rates have been on a steady decline, making bonds a great place for investors to park their money. Falling yields cause bond prices to rise, resulting in capital gains for investors.

Those bullish days appear to be over. Take the benchmark U.S. 10-year bond, for example. In early July 2016, it traded at a yield of 1.37% amid fears of deflation and talk of negative interest rates by central banks. Less than two years later, the U.S. 10-year now stands at 2.90%, a sharp climb even from last September, when it traded at 2.20%.

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About Author

Andrew Hepburn

Andrew Hepburn  Andrew Hepburn is a freelance financial writer based in Toronto. He writes about investments, market trends and personal finance. He has written for Maclean's, the Globe and Mail, RateHub.ca and Canadian MoneySaver.

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