What's Going on with Bonds During the Coronavirus?
If you're like most investors, you've probably been unnerved by the coronavirus-fear-driven gyrations in the markets. But while most commentators focused on stocks, much less ink and bytes were spent on the reaction of the bond market, which, more often than not, was summarized with head-scratching phrases like "bond yields fell today."
If you're not well-versed in bonds and other fixed income investments (and few investors are) such cryptic language may have led you to believe that investors were bailing out on bonds at the same time they were shedding stocks.
Actually, the opposite was occurring.
Perplexed? You're not alone. Unlike stocks, whose performance can be easily understood in terms of rising and falling prices, bonds employ a complex mix of
