Bond Yield Bloodbath: Are Big Rate Cuts Coming From The Fed?

Last week was a real bond bloodbath, and equities didn’t fare much better either. Why did everything collapse this week? Which Treasuries have fallen below 4% & what now for bond investors? Plus, what are the highest-yielding new issue agencies, corporates & brokered CDs currently?

#jenniferlammer #bondbeginners #bondmasters
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*Sources & referenced videos can be found in first pinned comment
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💎Bond Beginners (our foundational-level bond course):

💎Bond Masters (our intermediate-level bond course):




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SOURCES & FOLLOW-UP VIDEOS FOR TODAY'S VIDEO:





Here is the overview for Bond Beginners:

1. Bond Basics

What A Bond Is & How A Bond Works
Why Invest In Bonds
New Issue vs Secondary Market Bonds
Interest Rates & Bond Prices
Current Yield & Yield To Maturity
Always Remember This!
Buying At Par, Above Par & Below Par
Different Types Of Bonds
Wrap-Up

2. The Risks Of Bond Investing

Seven Key Bond Risks
Credit Risk
Interest Rate Risk
Reinvestment Risk/Call Risk
Inflation Risk
Liquidity Risk
Currency Risk & Country Risk
Bond Risk Mitigation Strategies
Wrap-Up

3. US Treasuries Overview

What Are US Treasuries
Why Invest In Treasuries
Where Can You Buy Treasuries
How Are Treasuries Taxed
Wrap-Up

4. Treasury Bills

What Are Treasury Bills (T-Bills)
When Do T-Bill Auctions Happen
Where Should You Buy At Auction
Auto-Roll When Buying At Auction
Where To Find Recent Auction Results
High Rate vs Investment Rate
Reopening Auctions
Cash Management Bills (CMBs)
Buying & Selling On Secondary Market
Wrap-Up

5. Treasury Notes & Bonds

What Are Treasury Notes & Bonds
When Do Auctions Happen
Buying Treasury Notes & Bonds
Auction High Yield vs Interest Rate
Floating Rate Notes (FRNs)
Treasury Zeros (STRIPS)
Wrap-Up

6. TIPS (Inflation-Protected)

What Are TIPS
When Do TIPS Auctions Happen
Nominal vs Real Yields
Negative Yields
How Do You Adjust TIPS For Inflation
Taxes On Phantom Income
Secondary Market Liquidity
Wrap-Up

7. I-Bonds (Inflation-Protected)

What Are I-Bonds
How Does I-Bond Interest Work
I-Bonds vs TIPS
The Annual I-Bond Limit
Wrap-Up

8. Agency Bonds

The Universe Of Bonds
What Are Agency Bonds
How Are Agency Bonds Taxed
Treasuries vs Agencies
Who Might Want To Consider Agencies
Yield-To-Call & Yield-To-Worst
Where Can You Buy Agency Bonds
Wrap-Up

9. Municipal Bonds

Our Bond Universe Gets More Complex
What Are Municipal Bonds
How Safe Are Munis
How Are Munis Taxed
The De Minimis Rule
Social Security & Medicare Premiums
Treasuries, Agencies & Munis
Who Might Want To Consider Munis
Wrap-Up

10. Corporate Bonds

Our Bond Universe Is Complete
What Are Corporate Bonds
How Safe Are Corporates
Corporate Bond Hierarchies
Five Key Features Of Corporate Bonds
How Are Corporates Taxed
Treasuries vs Corporates, Etc.
Who Might Want To Buy Corporates
Wrap-Up



Here is the overview for Bond Masters:

1. Stocks vs Bonds

Historical Performance
Are Bonds Really Less Volatile
Why Invest In Bonds
Accumulation vs Decumulation
Allocation of Stocks vs Bonds
Wrap-Up

2. Which Bonds Might Be Right For You

Treasuries & Other Types of Bonds
Nominal vs Real Yields
Inflation vs Non-Inflation-Protected
Taxable vs Tax-Advantaged Accounts
Wrap-Up

3. Bond Ladders & Other Bond Strategies

Normal vs Inverted Yield Curve
What Is A Bond Ladder
5 Important Bond Laddering Questions
Laddering When Rates Are Rising
Laddering When Rates Are Falling
Laddering When Rates Are Uncertain
What Is A Bullet
What Is A Barbell
Wrap-Up

4. Holding to Maturity vs Selling Early

Why Hold to Maturity
When To Sell Early Before Maturity
Tax Implications Of Selling Early
Wrap-Up

5. Individual Bonds, Bond Funds, Etc.

Why Buy Individual Bonds
Why Buy Bond Funds
Bond Fund Considerations
Key Bond Fund Concepts
CDs vs Treasuries
Other High-Yield Investments
Wrap-Up

6. Our B.E.S.T. Model Portfolios By Age

Our B.E.S.T Model Portfolios By Age
Model Portfolios In The Industry
B.E.S.T Model Portfolio Difference
How Much Do You Need To Retire?
How I Use The Rules of 100, 110, & 120
B.E.S.T Model Portfolios (20s)
B.E.S.T Model Portfolios (30s & 40s)
B.E.S.T Model Portfolios (50s & 60s)
B.E.S.T Model Portfolios (70s+)
Wrap-Up

7. The Decumulation Phase

What Is The Decumulation Phase?
Bear Markets & Recessions
What Can You Do In Bad/Bear Markets
Decumulation Tax Considerations
The 4% Rule
The Bucket Strategy
The Flooring Approach
Jen’s Bucket Strategy With A Twist
Wrap-Up



Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that:

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[jesusnoriega]

I have been intrigued by annuities for a long time and when I try to research it I come out more confused each time. Perhaps its my own ignorance or all the negative things, often times contradictory things, we hear about annuities from knowledgeable sources. So yes, a video on annuities done in your unique teaching style will be helpful to many.

[jeffreylyons]

I love this format, the information, the presentation, and duration.

[Last_one_before_I_go]

For the last 6 months I've been doing 30 day T-bills, but this has convinced me to split my holdings between 30 and 60 day. The analysis and viewer posts here have been immensely helpful as a guide, Jennifer thanks for your efforts and commentary.

[keithmachado-ppfv]

I got lucky and bought a couple of municipal bonds on Monday paying 4.5%. They are long dated with the first call date in 2031 so I am locked in for at least 7 years tax free. My CDs and agency bonds are all starting to be called though.

[Scott-xfxb]

As an existing bond holder with a sizeable position I have my popcorn and am ready for the show!

[rvnut]

I am not doing anything, I am staying put with all of my investments and with where they are. The key is to have a well balanced portfolio.

[YdcYouTube]

Thank you for this video. I take notes while I watch your videos. I take them as seriously as a college course. Thanks for sharing your knowledge Jen!

[kathyrussell]

I’ve been dollar cost averaging into longer term treasuries creating a ladder and income stream . We’re 64 and 66 . Bought in May again in June and once more in July . Already had a ladder of cd’s.

[John-mkbj]

Thinking about annuities. I read about the fees, the cost for having a beneficiary, and the insured amount. The unknown is scary. I could sure use a video.

[bigtoeknee]

With rate cuts coming bond funds will be appreciating as well I DCAed AGG over last 2 years .

[mr.j]

Earlier this year, I bought a Multi Year Guarantee Annuity (MYGA) paying 5.95% (with ROTH funds) and another one paying 5.85% (for a rollover IRA). This represents a small (and now SAFE) portion of my portfolio. I am very happy with the returns.

[RoseAletta]

I am interested in learning more about investing in annuities.

[Willy]

Seeing how much the government is going to be borrowing I don't see how treasury rates can stay low for long.

[DavidLitman-phlu]

Funny how one person's "bond rally" is another's "bond bloodbath". I'm considering buying some TLT as a short term trade, but continue to expect that longer term we will see rates edge higher.

[petrao]

Auto rolled my 4-wk T-bills, and DCA a little bit into the Total Mkt Index Fund.

[pdureska]

I'm staying in with my treasuries. I've rotated money into REITS over the past year. My yields in my 6 individual REITS (all different sectors) yield between 3.7 to 6%. I've seen people talk about one way the US can finance the debt is to offer Treasuries tax free and while they lose tax money, they can finance the debt thru US citizens buying more treasuries since foreign entities arent buying our treasuries and i think we end up being a win for us. I've seen two financial experts tout this plan as an option (and obviously decrease government spending). Again safety is important. Equities even with the little pull back are over valued for the most part in my opinion. I wish i had a crystal ball to know exactly what to do but at least i have a plan. Fed needs to be careful. cut too much too soon and perhaps inflation reignites. I still stand by my theory that a lot of the inflation was due to Biden trashing our energy sector early on. I am not against Green energy but i believe in choice and the green energy not ready for primetime. . Energy touches everything we make, grow, distribute, sell etc. Thats why i believe things remain expensive with little rollback.

[FranciscoDelValle]

Yes, want to know more about annuities.

[MrsChristmasCarol]

Thank you for the video. You are a calming voice in a very turbulent time.

[stephaniefonder]

Thanks Jennifer! I would love to get more info on annuities, as you mentioned in your video. I do not understand them and most places I've read about them say that they are BAD investments - that one is better off investing on their own. So I'm intrigued and suprised at that recommendation and would like to understand better. I've watched a ton of your videos and you've taught me so much already!