Major government bond yields, including the 10-year U.S. Treasury, have risen by 1% or more over the past year amid a global bond sell-off. The author says they will keep buying bonds, treating high yields as a buy-the-dip opportunity, and has chosen the Vanguard Total Bond Market ETF (BND). BND holds about 11,421 bonds, roughly 69% in U.S. government debt and the rest in investment-grade corporate bonds, with a 30-day SEC yield of 5.14% and an expected yield to maturity of 5.5%. However, BND lost 1.85% in total return over the past year as higher rates reduced the value of existing holdings, and the article stresses that bonds are not risk-free. The author argues that yields may not keep rising forever and that current prices may already reflect much of the losses.
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