Monitoring the yield curve–a slow motion train wreck

I continue to scan for ways to profit on what I believe will be the inevitable rise of interest rates in the future.   I think the classic 30 to 40% weighting in bonds that financial advisers propose for balanced risk, moderate growth portfolios is going to be a big loser in the next couple of years.

This Bloomberg webpage has a daily graphical update of the US government bills/bongs yield curve, plus going rates on TIPS, Corporates,  Municipals, etc.

This page on gives a tutorial on the yield curves, allowing you to compare today’s yield curve against historic ones, and showing the various shapes the curve can take.

This article  (“Duration–the looming scandal“) on bonds, illustrates how the duration of a bond or collections of bonds can be used to easily estimate the principal value impact of interest rate changes.

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