Bond funds today | TigerDroppings.com
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Mercy Percy
Florida Fan
Norman Oklahoma
Member since Oct 2009
1274 posts

Bond funds today

Why did a lot of my bond mutual funds take a crap today?


Bob Sacamano
Tulane Fan
Houston
Member since Oct 2008
2251 posts

re: Bond funds today
Mine went down only .08


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LSURussian
LSU Fan
Member since Feb 2005
85145 posts

re: Bond funds today
The ten year bond yield went up almost 3% today as a result of the Fed's announcement.

Bond mutual funds' NAV is inverse to yield. Yield goes up, NAV goes down.


foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
31425 posts

re: Bond funds today
Hm, maybe I refinanced at the right time after all.


LSURussian
LSU Fan
Member since Feb 2005
85145 posts

re: Bond funds today
maybe so!


matthew25
Ole Miss Fan
Member since Jun 2012
3908 posts

re: Bond funds today
Is it because of headlines like "Fed to launch bond buying -- The goal is to reduce long-term interest rates?"

My PIMCO and Vanguard got dinged badly.


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tigerrocket
LSU Fan
Member since Aug 2008
102 posts

re: Bond funds today
Capital gains distribution???


BennyAndTheInkJets
Arkansas Fan
NYC / Orange County
Member since Nov 2010
4245 posts

re: Bond funds today
quote:

Capital gains distribution???

This, PIMCO paid cap gains today after striking NAVs yesterday. Also the curve had a pretty strong bear steepening, however I doubt we'll see rates rise any more at all until the fiscal cliff negotiations are concluded.

Speaking of, it's looking like it'll be another 2-step deal. With one mini deal to keep us from going over with another set-up for a grand bargain in 2013.


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wegotdatwood
Member since Aug 2009
17094 posts

re: Bond funds today
So rates will be going up? I'll be buying a home within the next 6 to 12 months if I land a job.


BennyAndTheInkJets
Arkansas Fan
NYC / Orange County
Member since Nov 2010
4245 posts

re: Bond funds today
quote:

So rates will be going up?

I wouldn't assume this until negotiations are finished. Also rates are anchored on the front end and there are "limits" on how steep the curve can get because investors will take advantage of any sort of curve roll-down they can get.


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