💡 Frequently Asked Questions (FAQ)
- Q: Why are 30-year US Treasury yields hitting a 2002 high while stocks remain resilient?
- A: Rising yields reflect higher inflation expectations, fiscal concerns and Fed policy uncertainty. Stocks hold up due to strong earnings, liquidity and sector rotation, creating a rare bond-stock decoupling.
- Q: How does a bond sell-off impact ordinary investors?
- A: Bond prices fall as yields rise, hurting bond funds, savings-linked products and retirement portfolios with long duration exposure. Interest income improves but capital losses can offset it.
- Q: What practical steps can retail investors take to self-protect now?
- A: Shorten duration, diversify across asset classes, use laddered bonds or TIPS, avoid panic selling and rebalance toward quality, cash buffers and income-generating assets with lower rate sensitivity.