How to Play a Steeper Yield Curve

The first of the year was a downer for corporate bonds and real estate and utility shares. It was strong for floating-rate loan funds.

Illustration of a yield curve
(Image credit: Getty Images)

During the tumultuous initial week of 2021, the “U.S. yield curve reached its steepest level in four years,” reported Bloomberg News.

The ostensible cause was the buzz that the unified Congress will pass a larger COVID relief and stimulus package than we’d have gotten otherwise. Bond prices quickly sank.

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Jeffrey R. Kosnett
Senior Editor, Kiplinger's Personal Finance
Kosnett is the editor of Kiplinger's Investing for Income and writes the "Cash in Hand" column for Kiplinger's Personal Finance. He is an income-investing expert who covers bonds, real estate investment trusts, oil and gas income deals, dividend stocks and anything else that pays interest and dividends. He joined Kiplinger in 1981 after six years in newspapers, including the Baltimore Sun. He is a 1976 journalism graduate from the Medill School at Northwestern University and completed an executive program at the Carnegie-Mellon University business school in 1978.