Bond Values in a Volatile Market
by Jeffrey R. Kosnett
May 25, 2022
2 minutes
Steel yourself for six more months of instability.
The model: In May, the Federal Reserve hiked short-term interest rates by half a percentage point, the most in a single adjustment since 2000, and promised to do it again and again until inflation slows.
Stock prices curiously rallied as long-term interest rates fell back, also generating gains for bonds and
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