Bond perspective

So the bond market is selling off. No one should be surprised. Market value of the Barclay’s U.S. Aggregate Bond Index was down 3.01% year-to-date through June 25. At the same time, the yield on the index rose 0.78 percentage point – because when prices decline, yields rise. Those who hold bonds of any flavor than the very shortest of maturities should be holding them for the longer term – and shouldn’t bail out when prices fall.

– John Davis