(PUB) Investing 2015
March 2015
Morningstar FundInvestor
21
Bond-Market Snapshot
Treasury Yield Curve ( % )
Yield to maturity of current bills, notes, and bonds
p Current ( 02-28-15 )
p One Year Ago ( 02-28-14 )
Interest-Rate Review Risky assets were rewarded for a change in February, while safe- haven investments, including U.S. Treasuries, took a back seat. The Barclays U.S. Corporate High Yield Index rose 2.4%. Bargain- hunters came back in droves as worries about falling oil prices had depressed prices (and raised yields) in prior months. Mean- while, the Barclays U.S. Treasury Long Index fell 5.4%, and the Barclays U.S. Treasury 7–10 Year Index dropped 2.3%.
6.00
5.00
4.00
3.00
2.00
1.00
Maturity
1 mo 3
6
1 yr
2
3
5
7
10
20
30
Treasury and Municipal-Bond Yields
Municipal-Bond Spread Snapshot Unattractive 1.73
p Vanguard Interm-Term Tax-Exempt p Vanguard Interm-Term U.S. Treasury
7.00
-0.15
Feb. 28, 2015
6.50
High
1.73
5.00
Low
-1.83
4.50
02-28-15
Average
0.11
3.00
Last Month (01-31-15)
-0.19
1.50
A Year Ago (02-28-14)
-0.64
0.00
Attractive -1.83
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
High-Yield and Treasury-Bond Yields
p Vanguard High-Yield Corporate p Vanguard Interm-Term U.S. Treasury
High-Yield Bond Spread Snapshot
15.00
3.34
Attractive 10.71
Feb. 28, 2015
12.00
High
10.71
9.00
Low
2.01
Average
4.00
6.00
Last Month (01-31-15)
3.73
3.00
02-28-15
A Year Ago (02-28-14)
2.70
0.00
Unattractive 2.01
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14
Data as of Feb. 28 , 2015 . Yield Spread: The difference between yields on differing debt instruments, calculated by deducting the yield of one instrument from another. The higher the yield spread, the greater the difference between the yields offered by each instrument. For municipal bonds, a smaller spread is attractive because munis typically pay smaller yields than Treasuries. For high-yield bonds, a wider spread is more attractive because junk bonds typically pay higher yields than Treasuries.
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