A Helpful Yardstick For Anxious Investors

Investors know that risk in the bond market is directly related to maturity of the bonds. If rates go up, a 30-year bond is going to fall further than a three-year bond. That's because the 30-year bond will be paying a lower-than-market interest rate for a very long time, while the holder of the three-year bond will only have to suffer for a few more years.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.