Fed raises rates, bonds and gold rise - Page 2
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Thread: Fed raises rates, bonds and gold rise

  1. #11
    Junior Member
    Join Date
    Mar 2017
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    5

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    For a long time now the short term corporate bond funds like CBO, ZCS and others have been slowing falling in price. From what I understand this is because the low rate environment, the bond fund continues to add new bonds into the fund at the new lower yield, slowly diluting the overall yield of the fund, so the price drops to adjust accordingly.

    But from what I also keep hearing is that bond funds will fall (according to the duration) as the overnight rates rise.

    These both can't be right... that the fund falls because of low rates.. and it also falls because of rising rates? What am I not understanding correctly here?


  2. #12
    Senior Member
    Join Date
    Jun 2016
    Posts
    1,403
    Gold has been so badly manipulated and the physical and paper markets are so out of whack that we don't know what price will do.


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