What Record-Low Bond Yields Mean for Investors

Before you go, we thought you'd like these...
Before you go close icon

The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.

We just saw yields on 10-year Treasury bonds hit their lowest point ever -- 1.642%. Depending on your position, this can be a good thing or a bad thing. Borrowers including folks looking to take out or refinance a mortgage, companies looking to float debt, and banks looking to fund operations benefit greatly. Lenders, including the banks on the other side of the mortgage transaction and individual savers looking for safe places to earn income, aren't so lucky. The key for all these parties is to invest with the possibility of rising interest rates in mind. This includes not chasing higher-yielding exotic instruments. Anand explains in the video.

If you're interested in some higher-yielding stocks for the stock part of your portfolio, The Motley Fool has compiled a special free report outlining nine dependable, dividend-paying stocks. It's called "Secure Your Future With 9 Rock-Solid Dividend Stocks." You can access your copy today at no cost! Just click here to discover the winners we've picked.

At the time this article was published Anand Chokkaveluowns shares of Bank of America, Johnson & Johnson, Citigroup, and McDonald's. The Motley Fool owns shares of Bank of America, Citigroup, and Johnson & Johnson.Motley Fool newsletter services recommendJohnson & Johnson and McDonald's. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners