The bottom line seems to be that one needs to guess how much of the price decline is real reaction to interest rate changes and how much is anticipation of future changes. Possibly the end of QE is already anticipated.It is also likely that some of the decline is due to bond funds selling bonds to close out the expensive loans. They may very well own bonds that have appreciated in value making it possible to sell the bonds at a profit or breakeven to cover the loans. That can clear the books quickly for the purchase of new bonds at higher rates.
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