If today's plunge is due to hawkish fed why are bond funds not down?

Well not all bonds are equal , bonds can have duration from 4 weeks to 30 years, also sometimes corporate bonds act different than government bonds and BND is a basket that holds everything.

Short term bonds may be down on a somewhat hawkish statements by Powell meaning next rate hike could be 75 points . However longerterm this could mean that Powell moves aggressively to crush inflation and once inflation is crushed rates can then be lowered again

So remember the 2 year / 10 year bonds are currently inverted what sort of means the market is expecting rate hikes in the short term but long term rates to fall , from my basic and amateur understanding .

So in short rate hikes were priced in, however hawkish statements from powell seem to indicate he is serous about crushing inflation quickly , this could signal for longer term rates then can fall

/r/investing Thread