Despite US Treasury department manipulation of the yield curve last week and another Fed pause, yields still average above five in the aggregate

 We saw a much bigger surge into bonds in March, but yields persisted.

With inflation, employment, and nominal GDP all still strong, Treasury tricks are unlikely to unravel this.

Cash such as VMFXX at 4.21% ytd and total stock market such as VTSAX at 13.92% ytd continue to trounce bonds ytd. VBTLX is still down 0.39% ytd. AGG is down 3.46% ytd.

 

Let's check in on the US Treasury yield curve and year to date performance of selected Vanguard funds

The UST yield curve aggregate closed up a net 0.68% week over week on 9/15, to an average of 5.006923, the first Friday close this cycle in the 5s.

 

As expected, fixed income isn't doing well in this rising-rate environment. Stocks have done surprisingly well this year, and even cash has beaten bonds.

 

YTD performance:

 

Treasury VFISX 0.68% VFITX -0.26% VUSTX -4.12%;

Investment Grade VFSTX 2.21% VFICX 1.73% VWESX 0.00%; 

Total Bond VBTLX 0.44%; Cash VMFXX 3.48%; Total Stock VTSAX 16.45%.

 

Other popular vehicles: 

 

$SPX 16.37%

$AGG -2.12%

$TLT -8.38%. 

 

US Treasury yields have tanked 14% since March 8 amid bank failure fears

The yield curve aggregate averaged 4.674 on March 8. Now it averages 4.017.

Bills yields fell from an average 5.09 to 4.52 in nine days, 11%, after rising 6.5% in the month 2/8 to 3/8.

Notes yields fell from 4.45 to 3.55, a whopping 20%, after rising over 12% in the month after 2/8.

Bonds yields fell from 4.00 to 3.68, 8%, after rising nearly 6% in the month after 2/8.

It's been extremely difficult to trade the volatility. $TLT is up 5.31% ytd., but $AGG is up just 1.99% ytd. It is a fool's errand to invest in bonds when they behave like stocks.

Meanwhile $SPX is up 2.42% ytd.

This is my opinion, not advice.