Bonds: Nothing to Fear but Fear Itself

摘要

Seal the windows. Stock up on bottled water, energy bars, and BlackBerry batteries. Be ready to kick off your $250 wingtips and run for your lives. Prepare, Wall Street, for certain destruction at the hands of... 5% interest rates! That, anyway, has been the reaction of many to the violent sell-off in U.S. Treasuryrnbonds this month that has sent interest yields spiking. (When the demand for bonds fades and prices fall, their yields rise, and vice versa.) The yield on the benchmark 10-rnyear note touched a five-year high or 5.33% on the morningrnof June 13, up from just 4.56% twornmonths earlier.