The Fed signals a shift in policy and may begin tapering its bond-buying programs as early as November. Financial markets reacted with price swings as interest rate increases came into focus.

To give some context, we zoom in on the ten-year Treasury note, a government-issued debt used to pay government obligations. We find that long-term Treasury yields have increased substantially over a short period.

Investors broadly can manage uncertainty by diversifying across asset classes, like stocks and bonds, and importantly within asset classes, like bond sectors, credit, and duration.

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