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.

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