yes, agreed that the Fed affects the short end of the curve most, and the Fed has progressively less influence on bonds the longer out you go on the curve. So you have a point.
Gary U. S. Bonds wrote:
agip, correct me if I'm wrong, but don't the Fed rate hikes primarily affect short and medium term bonds? Perhaps that explains why the long term ones are behaving differently.
There has been a small scale dispute lately on the thread on what to do with bonds - some have been saying the safest place to hide out is short term bonds and that long term bonds should be avoided.
So I'l doing my usual annoying jabbing when I think someone might be wrong.
My point is that even has interest rates have risen, long terms bond have done best. And that is a bit against the conventional wisdom, so I'm interested.