Changing Interest Rates, Heads Up !!



Click to Enlarge

The recent surge in interest rates (see 5 Year Treasury Yield above) came in response to the change in political winds and prospects of a more balanced economic policy from Washington.  We are seeing some small increases in offer yields from fixed annuity providers, and there has been a crack in the value of high quality bond funds. 

It is time to review all bond funds to see how sensitive they are to this rate increase as it appears likely that the trend up will continue in the short run.

Also, since short term rates are still pined down near zero by the FED, the time is approaching soon to take advantage of fixed income investments (individual bonds, CD's etc) in the 2_5 year maturity range. 

This is also a positive indicator for the stock market. -JOHN

BOYDSTRATEGY.COM

If you would like John or Rosemarie Boyd to speak to your group or organization on financial planning or investment strategies contact Rosemarie at rboyd@boydstrategy.com or call her at 508-754-3226. The comments on this blog do not represent individual Investment, Tax or Legal Advice, and do not represent an offer to buy or sell any security. Consult the appropriate professional before acting on any idea seen here.