Treasury yields have risen across the curve since the end of September.  For bond investors, a difficult investing environment has just gotten more difficult. Economists at Charles Schwab continue to suggest keeping average duration low due to the expectation for yields to push higher. 

Rising bond yields is not a reason for bond investors to be blue

“We see the potential for 10-year Treasury yields to move up to 1.75% this year and above 2% in the first half of next year.”

“Over the next six to 12 months, we suggest investors look for opportunities to extend duration if yields move higher, as anticipated.”

“Over the long run, we don’t see rising bond yields as a reason for bond investors to be blue. Higher yields – in real terms – are good for income investors.”