June 10, 2013 01:00 AM

Market performance during periods of rising rates

How different fixed-income asset classes have performed in the last four periods of significant interest-rate increases

	10-year Treasury yield			Average annualized returns
Period	Start of period	End of period	Change (basis points)	Invest- ment-grade bonds	Short-term gov't credit	High-yield bonds	Long- term Treasury bonds	Mortgage-backed securities	Treasury bills
April 30, 1983, to June 30, 1984	10.27%	13.84%	357	-2.89%	6.78%	-1.07%	-8.30%	-0.63%	10.09%
Aug. 31, 1986, to Sept. 30, 1987	6.92%	9.59%	267	0.01%	3.67%	5.60%	-10.48%	2.31%	5.75%
Oct. 31, 1993, to Nov. 30, 1994	5.43%	7.91%	248	-4.94%	0.73%	-0.05%	-10.28%	-1.66%	3.96%
Sept. 30, 1998, to Jan. 31, 2000	4.42%	6.67%	225	-1.29%	2.97%	3.07%	-6.32%	1.33%	4.76%
May 30, 2003, to June 30, 2006	3.37%	5.14%	177	1.83%	1.66%	9.39%	1.12%	2.87%	2.27%
Treasury rates: 10-Year Constant Maturity Treasury yield. Short-term government credit: Barclays 1-3 Year Government/Credit index. High-yield bonds, for the 1983–'84 period: Ibbotson Associates High-Yield index; for other periods, Barclays U.S. High Yield index. Long-term Treasury bonds: Barclays U.S. Treasury Long index. Investment-grade bonds and mortgaged-backed securities: Barclays’ indexes. Treasury bills: Citigroup 3-Month Treasury Bill index.
Sources: T. Rowe Price, Barclays, Ibbotson Associates and Citigroup