When investors pull their money out of stocks and need some place to put it, they often turn to the bond market. U.S. Treasuries are considered essentially risk-free. So investors can park their cash, earn some interest and know their money will be kept safe and sound. As investors moved money from stocks to bonds during the past couple of days, we briefly saw bond yields drop. Remember, yields are measure of the return investors get on money invested in bonds. But that dip aside, bond yields have been steadily rising in the last few months. Here’s why and what that means.
Click the audio player above to hear the full story.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.
Donate now to get almost any thank-you gift.