Treasury bond ‘madness’ will end badly for yield-hungry investors
by Brett Arends
U.S. Treasury bonds — backed by the full faith and credit of America — are considered the safest investment in the world.
Friday’s sudden market tremor may herald the end of the bond bubble. Or it may just be the beginning of the end. But either way, this bond-market madness is going to end the way all such madness ends — with ordinary people losing money.
The 10-year Treasury currently yields about 1.6% , meaning that someone who buys today and holds for 10 years will earn that interest rate, compounded, over the period.