What is a Treasury bond? Treasury bonds, often referred to as T-bonds, are long-term loans made to the U.S. government. When you buy a Treasury bond, you’re essentially lending money to the federal government. In return, the government agrees to pay you a fixed rate of interest every...
The federal funds rate is the Fed’s main benchmark interest rate that influences how much consumers pay to borrow and how much they’re paid to save, rippling through the U.S. financial system to influence yields on certificates of deposit (CDs) and savings account, as well as rates on...
Treasury bond futures are a type of debt instrument that is issued by the US Treasury that allows investors to protect...
The answer is neither simple nor obvious, which is why a thoughtful treatment of this issue is something required at this juncture. And to provide just such as treatment, I am going to show you what we wrote today in the daily market briefing,Eagle Eye Opener. TheEagle Eye Openeris a co...
You might think that unrealised losses don’t matter. One problem is that the bank has bought the bond with someone else’s money, usually a deposit. Holding a bond to maturity requires matching it with deposits and as rates rise, competition for deposits increases. At the largest banks, li...
In addition, dividend stocks face interest rate risk. When interest rates rise, investors may flee dividend stocks for the guaranteed income of bonds, prompting dividend stock prices to fall. That said, "the defensive characteristics of dividend stocks can provide a lower-volatility way to stay in...
Challenges are stacking up for the powerhouse semiconductor companies, but AI is picking up the slack. Brian O'ConnellFeb. 25, 2025 Best Tax-Free Muni Bond Funds Municipal bond funds can provide exemptions from federal and, in some cases, state taxes. ...
It’s important to keep in mind that investing in T-bonds is more about protecting your cash than growing it, especially in certain market conditions. “Given the low risk and ultra-low yields in this environment, investors must consider the low rate of return they will receive,” Sommariva...
While a lot of pundits have offered explanations such as the rising dollar, recession fears, high oil prices and “higher-for-longer” monetary policy, the real reason is simple… rising Treasury bond yields. And here, I am not just talking about a modest rise. Rather, bond yields are now...
In effect, the interest paid on Series I bonds is variable and changes over time, making it difficult to forecast the value of the bonds years from today. How to Calculate Series I Bonds The actual rate on the bond, known as thecomposite rate, is calculated by combining the fixed and in...