Best Financial Advisors in Dayton, OH

This chart shows the 10-year Treasury vs. the Fed funds rate since 2000.nnThe takeaway here is that there were only limited periods during the past 20+ years in which an investor could have purchased a 10-year Treasury when it was yielding 4% or higher.nnThe chart shows that the 10-year did drift above 5% at some points in the 2000s; it also tested 4% (the red line) several times between 2008 and 2010 before falling each time.nnIf you’re looking for investment ideas, and you are comfortable tying up your money for as long as 10 years, you may want to take a closer look.nnFMG created this content to provide insights into a topic and is not affiliated with a broker-dealer or investment advisory firm.nn#T-Bills #T-Bonds #Treasurys #ShortTermCash #Bonds #FixedIncomennThe market value of a bond will fluctuate with changes in interest rates. As rates rise, the value of any existing bond typically falls. If an investor sells a bond before maturity, it may be worth more or less than the initial purchase price. By holding a bond to maturity, an investor will receive the interest payments due plus the original principal, barring default by the issuer. Investments seeking higher yields also involve a higher degree of risk. The 10-year treasury performance is not indicative of the past performance of a particular investment.