Bond Funds Lower In October

November 6, 2002 ( - Bond funds showed negative returns in October, according to mutual fund research firm Lipper, Inc.

October saw the average US taxable bond fund return -0.16%.   However, for the year returns are still positive up 2.77%.   Other bond funds gave back in October as well:

  • General US Treasury Funds -1.70%
  • High yield funds -0.54%
  • Corporate Debt A Rated Funds -0.89%

October was not all bad, as some bond funds still posted gains:

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  • Ultra short obligation funds +0.10%
  • Short US Treasury funds +0.08%
  • Short US Government funds +0.15%

Additionally, US Mortgage funds were up 0.18% in October and 7.17% for the year.   GNMA funds also showed gains, returning 0.13% in October and 7.24% for year.

The average diversified stock fund posted a 5.85% return in October, but has returned -22.50% for the year.

Bond fund results come on the heels of  today’s Federal Reserve announcement to cut the discount rate 0.50% to 1.25%.