
Bond Investing When the Yield Curve is Inverted
The Treasury yield curve remains persistently inverted, implying that short-term bonds offer higher expected returns than intermediate- or long-term bonds. Given this information, does it make sense for intermediate-term bond investors to seek those higher returns by shortening the duration of their bond portfolios? A Thought Experiment: Two Ways to Hold Bonds for Five Years … Continue reading Bond Investing When the Yield Curve is Inverted