DEC-1982
Full time employment: Posting here.
The year is not over but I am pretty happy with the bond market returns as of now. Vanguard Total Bond Market Index is showing -0.24% today.
When I did a back-of-the-envelope calculation at the beginning of the year, I thought that with a duration of about 6 years, 4 quarter point increases would produce a loss of -6% and a yield of around 3-3.5% would deliver a return of around -2.5%. It just shows these calculations are never as simple as that. I do understand a short-term rate increase does not equate to a long-term rate increase or a total market rate but still ...
When I did a back-of-the-envelope calculation at the beginning of the year, I thought that with a duration of about 6 years, 4 quarter point increases would produce a loss of -6% and a yield of around 3-3.5% would deliver a return of around -2.5%. It just shows these calculations are never as simple as that. I do understand a short-term rate increase does not equate to a long-term rate increase or a total market rate but still ...