fool.com·May 20, 2026
Bond funds have become less safe for investors due to rising interest rates, which have driven bond prices down. Concerns about inflation, government spending, and national debt are contributing to increasing long-term bond yields, indicating potential challenges for bond investors.
Given the rising long-term interest rates and the concerns over inflation and government spending, consider reassessing your bond portfolio's duration risk. Focus on shorter-duration bonds or bond ETFs to mitigate potential losses from further increases in interest rates, thus preserving capital while still gaining exposure to bond markets.