November Was a Turkey for Bonds

The yield-to-worst of the S&P/BGCantor Current 10 Year U.S. Treasury Index averaged 2.26% for the month of November.  The index started the month at 2.15% and closed the month at 2.22%.  At one point on Nov. 9, 2015, the yield was as high as 2.35%, and the index ended 8 bps wider overall.

The anticipation of a Fed interest rate hike on Dec. 16, 2015, and general U.S. economic improvement had the majority of bonds in the red for the month.

The S&P 500® Bond Index lost 0.28% for November, while it kept the YTD return in the green, at 0.25%.

Energy was the sector that lagged the most, as the S&P 500 Energy Corporate Bond Index was down 4.42% YTD.

All sector indices of the S&P 500 Bond Index underperformed, except for the S&P 500 Financials Corporate Bond Index and S&P 500 Telecommunication Services Corporate Bond Index.  These indices were positive for November but did not return much, coming in at 0.09% and 0.03%, respectively.

Outside of the S&P 500 Bond Index, the S&P Taxable Municipal Bond Select Index was the positive performer of the S&P U.S. Aggregate Bond Index, with a 0.47% gain for the month.

Exhibit 1: Performance of the S&P 500 Bond Index and S&P 500 U.S. Aggregate Bond Index
November Fixed Income Total Returns

 

 

 

 

 

 

Source: S&P Dow Jones Indices LLC.  Data as of Nov. 30, 2015.  Past performance is no guarantee of future results.  Table is provided for illustrative purposes.

The posts on this blog are opinions, not advice. Please read our disclaimers.

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