What Georgia Races Mean For Bond Investors

Plus: How Vaccinations Are Going You are receiving this limited-time email resource as a subscriber to Kiplinger's free e-newsletters. To unsubscribe at any time, simply click the link in the footer below. JANUARY 6, 2021 [View in browser]( HOW TO PROTECT AND GROW YOUR BUSINESS AND INVESTMENTS NOW The OTHER investing impact from the Georgia runoffs? You're going to hear plenty today about a now-likely Democratic sweep of Georgia's senatorial seats, and thus a de facto Senate majority (with Kamala Harris's tiebreaking vote), and what that means for several groups of stocks. You'll hear a lot today about [marijuana stocks]( and [green energy]( for instance, which are going through the roof. But bond investors should take note, too, because interest rates are also popping in Wednesday trading. The 10-year Treasury yield rose back above 1% for the first time since March. And remember: As bond yields rise, prices decline. The greater likelihood of another COVID stimulus and more federal spending in general is goosing yields as investors bet that the government will have to borrow even more. Also, if fiscal stimulus and a recovering economy ramp up the rate of inflation, the Federal Reserve, which currently isn't expected to raise its benchmark interest rate for years, could move up that timeline. That could weigh heavily on bond investors -- especially those that entered such funds more recently and are earning paltry yields. --------------------------------------------------------------- SPONSORED CONTENT FROM P&N [Roundup® Weed & Grass Killer Product Label Class Action Settlement]( Purchased Roundup® Weed & Grass Killer? A product labeling class action settlement may entitle you to payment up to $53 per unit claimed. Visit [www.RoundupWGKSettlement.com]( for more information and to file a claim before the February 16, 2021 deadline. [READ MORE]( --------------------------------------------------------------- Initial shipments of the COVID-19 vaccines have been shipped. Now, there is some concern about the speed of actually giving the shots. Four million shots have been given since the rollout began, but the pace needs to be two million or more every day, given the two-shot regimen required for the Pfizer ([PFE]( and Moderna ([MRNA]( vaccines. Nancy Messonnier, the Director of the National Center for Immunization and Respiratory Diseases at the Centers for Disease Control and Prevention, is optimistic that the pace will pick up shortly. She points to two things that have slowed the initial schedule: The winter holidays, which limited work time; and the challenge of setting up mass distribution sites. Hospital staff have been inoculated quickly, since hospitals are large organizations designed for mass administration. Private physicians and dentists, however, typically have to sign up with their county health departments, creating an extra layer of coordination. Also, an early priority has been the elderly in long-term care facilities, where extra caution is needed because of the fragile condition of most residents. It also helps that, according to the government’s Operation Warp Speed, thousands of pharmacies will soon be providing the vaccines. A key statistic to pay attention to will be the number of shots given in the first few weeks of January, now that the holidays are over and the initial administrative hurdles have been dealt with. This will tell us whether we can get to herd immunity by the end of the summer or not. Free download, [The Kiplinger Letter's Forecast](. No information required from you. SPONSORED CONTENT FROM P&N [Roundup® Weed & Grass Killer Product Label Class Action Settlement]( Purchased Roundup® Weed & Grass Killer? A product labeling class action settlement may entitle you to payment up to $53 per unit claimed. Visit [www.RoundupWGKSettlement.com]( for more information and to file a claim before the February 16, 2021 deadline. [READ MORE]( LATEST INVESTING NEWS FROM KIPLINGER.COM [6 Reasons Why Your Second Stimulus Check Might Be Delayed]( [10 Things Social Security Recipients Need to Know About Their Second Stimulus Check]( [The 11 Best Growth Stocks to Buy for 2021]( [A Third Stimulus Check? Biden Says $2,000 Checks Will "Go Out the Door" if Democrats Win in Georgia]( [Sign Up for Kiplinger's Free Tax Tips e-Newsletter for Money-Saving Tax Planning and Tax Filing Guidance]( [Kiplinger] [Facebook]( [Twitter]( [LinkedIn]( Send this to a friend. [Click here.]( All content ©2021 The Kiplinger Washington Editors 1100 13th Street, NW, Suite 1000 Washington, D.C. 20005 Thank you for subscribing to Kiplinger's A Step Ahead, a free resource to help readers navigate the economic recovery from COVID-19. If you ever wish to stop receiving this service, please [click here to unsubscribe](.