After more than two years of steadily rising interest rates, we believe 2019 could mark the peak in U.S. Treasury yields for the current business cycle. However, while the prospect of more stable or lower interest rates may be positive for bond investors, we expect the road ahead to be bumpy.
Rising long-term Treasury yields have lowered the price of preferred securities, presenting a relatively attractive entry point for long-term investors. But preferred securities come with a unique set of characteristics, including greater risks.
One potential area of compromise for the new Congress may be infrastructure spending, which could lead to increased municipal bond issuance. However, we expect demand for municipal bonds to continue to support prices next year.
Thumbs up / down votes are submitted voluntarily by readers and are not meant to suggest the future performance or suitability of any account type, product or service for any particular reader and may not be representative of the experience of other readers. When displayed, thumbs up / down vote counts represent whether people found the content helpful or not helpful and are not intended as a testimonial. Any written feedback or comments collected on this page will not be published. Charles Schwab & Co., Inc. may in its sole discretion re-set the vote count to zero, remove votes appearing to be generated by robots or scripts, or remove the modules used to collect feedback and votes.
At Charles Schwab, we encourage everyone to take ownership of their financial life by asking questions and demanding transparency.
Our Insights & Ideas bring you information that fosters that ownership, because we believe that the best outcomes in life come from being fully engaged.
Want to know more? Talk with your Schwab Financial Consultant or call 800-355-2162.