Hello, Welcome to the 49th issue of Allison’s Ode to the Second Moment, a newsletter about bonds, babies, and different kinds of sinners. What’s Up with Interest Rates Going Up? Markets, or people who make money talking about markets, are in a tizzy because the 10-year bond yield exceeded 3%—the highest rate since 2011! People have very short memories. Bond prices behaved like the stock market the past 10 years. Prices kept going up with hardly any volatility. Neither of these things are natural, especially for bonds. Stock prices can keep going up, but bond prices—or so we thought—revert to some long-term average.
Allison's Ode to the Second Moment
Allison's Ode to the Second Moment
Hello, Welcome to the 49th issue of Allison’s Ode to the Second Moment, a newsletter about bonds, babies, and different kinds of sinners. What’s Up with Interest Rates Going Up? Markets, or people who make money talking about markets, are in a tizzy because the 10-year bond yield exceeded 3%—the highest rate since 2011! People have very short memories. Bond prices behaved like the stock market the past 10 years. Prices kept going up with hardly any volatility. Neither of these things are natural, especially for bonds. Stock prices can keep going up, but bond prices—or so we thought—revert to some long-term average.
Comments on this post are for paid subscribers