02/23/2021
The graph shows the last 50 plus years of the 10 year treasury rate. It has been used to benchmark mortage rates and is one of the most commonly traded bonds. Typically I use this to help gage bond interest rate directions and thus performance. This past year, interest rates hit historical lows which has help bond funds perform rather well. We are starting to see interest rates trickle back up, and we will likely continue to see that as the world works its way through COVID. As interest rates start to rise we will likely start seeing bond fund's perfomance hindered. There are multiple options available for those in bonds who are looking to continue income streams while avoiding taking a hit to their bond portfolio. Energy stock dividends have been the stongest perfoming sector in the S&P 500 from a dividend perspective, Bank stocks had a decent dividend outlook as well, and income generating retirement products can be a good tool for those not wanting to participate in market and inflation risk altogether.
