The emerging markets bond, with its risk premium, is up 3.39% and the US Treasury bond fund is up 0.54%.

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The higher yield in the underlying assets of funds like EBND are of no help, because EBND is down 1.5% so far in September while the zero yield of the iShares 3-7y US Treasury Bond (IEI) fund is up 0.35% thanks to higher bond prices.

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You can buy a ten-year Treasury today, a ten-year Treasury bond from the US Government.

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However, the possibility of a reduction in the US Treasury credit rating would affect the bond markets, and corporate debt as well, which would be forced to pay a higher insurance premium for its debt going forward in the case of a US downgrade.

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Rising interest rates mean losses for holders of long-dated debt, and he says that if it were not for the Federal Reserve's bond-buying programme, US Treasury yields would be "higher, meaningfully higher".

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We also found out today that Pimco, the world's largest bond fund, has been buying US treasury bonds again.

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