Bond funds picking up?

[BigNick]

I hold a couple of bond funds, one that invests in AAAs, the other in "high-yield" (government and private). For the last 3-4 years these have been bumping along a rocky bottom. But in the lest few weeks their value has picked up rather nicely. Did something happen? (As a "buy and hold forever" kind of person, I'm pretty clueless about the state of the markets). The funds are denominated in Euros but they invest worldwide, and currency fluctuations don't generally seem to cause any major changes in their value.

 

[audreyh1]

Yes, interest rates have been dropping all year, and dropped quite a bit more over the past week or two.

 

[mrfeh]

Did something happen? (As a "buy and hold forever" kind of person, I'm pretty clueless about the state of the markets).

That's good, if it means you won't tinker with things due to market changes.

The US 10 year yield has dropped from 3.5% to 2.0% over the last 9 months.

 

[RenoJay]

The market is anticipating serious reduction in rates around the world and US which makes bond values rise. I never held bond funds in my life til about a month ago.