NEW YORK (TheStreet) -- The Current Yield column in last Saturday's Barron's recapped the action in the bond market from two weeks ago and the impact it had on one bond ETF and a couple of closed-end municipal bond funds. This was instructive as a reminder of what can happen to bond funds when rates go up and worth exploring further.
Barron's reported that during the week of March 12, the yield on the 10-year U.S. Treasury went from 2.03% up to 2.29%. As most investors know, interest rates at various points along the yield curve are at or near all-time lows; certainly well below normal as the Federal Reserve maintains a 0% interest policy in an attempt to spur natural economic demand.
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