How Rising Bond Yields Affect Your Portfolio

Amid a fall in high-growth names and a mooted return to normal, now is a time to check your asset class mix, says Morningstar's Matthew Wilkinson and Christine Benz.

Emma Rapaport 11 May, 2021 | 12:07PM
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Bond yields are rising. The yield on a 10-year US Treasury bond is almost a full percentage point higher now than it was six months ago. And the equity sectors and styles that drastically underperformed last year like oil and value have begun to show signs of recovery.

What is the relationship between the two and why do higher yields put pressure on growth stocks? Morningstar senior fund analyst Matthew Wilkinson and Morningstar director of personal finance Christine Benz discuss what rising yields mean for your portfolio.

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About Author

Emma Rapaport  is editorial manager for Morningstar Australia.

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