Most investors don’t hold only short-term bonds. Longer bonds pay higher yields, and that’s what attracts them. Many of the popular bond funds are intermediate duration, holding bonds that mature in five to ten years. When longer-term yields rise, these funds get hit too.

The maths is simple. When new bonds pay more, old bonds paying less have to fall in price until their yield matches. The longer the bond, the bigger the fall.On 1 October, TLT traded as low as US$76.76, the lowest price since it listed in 2002. A fund that holds nothing but US government bonds, at an all-time low.

Does that look safe to you?

Some will argue that they hold individual bonds, not a bond fund. The price drop is temporary, because you get your capital back at maturity. That’s true, as long as the bond makes it to maturity. Some never do. The most recent high profile example would be Credit Suisse’s AT1 bonds, which became worthless in 2023.

I’m not here to bash bonds. But it has been a terrible few years ever since the Fed started hiking rates in 2022, and it isn’t over. On 16 September, the Fed raised rates again by 0.25 percentage points, to 3.75% to 4%. That was its first hike since 2023.

Well what u think bond still a good buy ?