Well, Q4 was an interesting one. Basically started with a bang, October, November, fantastic returns. And then we ended the quarter in December with just a whimper. It's interesting, all the headlines were talking about China's lockdown being rescinded and slowly but surely, and now we know that they have taken that off, but it was just early on in the quarter they were talking about that. We were talking about soft landings in the economy. The Fed had raised interest rates three consecutive months in a row, 75 basis points, and then another 50 in December. I mean, so people were saying maybe we're approaching a soft landing. Goldilocks employment reports and really Q3 earnings were pretty good. I mean, everybody was expecting kind of more of a disaster than it was. But then the concerns, I think realization that inflation was rearing its ugly head, that recession was possible and that even with better than expected nonfarm payrolls even recently, that that really supported the Fed really keeping that foot firmly on the brakes.
And so we had a Tale of Two Cities if we take a look at Q4 and what the returns were like. And this was all really based on one thing. And I say it's one thing, but it is the yield curve. It's what the Fed has been doing. And the yield curve remained inverted at the two-year yield over the 10-year yield. And I know 99% of the people already understand this, but the two-year yield is generally lower than the 10-year yield. You and I, if we put our money, lock it up for a number of period of time, we want to have a higher return at the longer end than we do the shorter end. Well, recently that has not been the case. And in fact, we've been talking about the inversion of the two-year yield against a 10-year yield for quite some time.
But what we did notice here in December, and it actually started in November, is that we started to see that the one-month yield was actually higher than the 10-year yield. And this is not something we've seen for quite some time. So from about November 15th to December 30th, we saw what's called an inverted yield for the one-month yield versus a 10-year yield. And we saw some of the biggest moves during the quarter at that one month level. So the one-month yield for the treasury yield ended up at 4.12%. That's really quite high from whatever at the beginning of the year. I think it was at 0.03 or something ridiculously low like that. But they saw 133 basis point increase. The two year we saw about a 19 basis point increase for the quarter, and this is all for Q4 to 4.41%. And then the 10-year yield only saw about a five basis point increase for the quarter to 3.88%.
And the reason I point this out is this is what actually made a very good quarter for us. Prior to that, we've been seeing fixed income funds really just get hammered. Equity funds just get hammered. And this turned out to be a really good quarter. In fact, this was the best quarterly returns that we have seen since Q4 2020. That's a pretty big statement. And the average closed-end fund returned 4.93%. Now, I know people say the average closed-end fund, well, equity funds actually returned 6.4% overall, and on the fixed income side average return to 3.82%. So really this issue, this consternation of whether we're hitting inflation or recessionary periods only impacted us during the month of December, and that's where we suffered monthly returns for the first month in three. So if I take a look at this again, December returns, we see the average fund lost about 1.50%.
Equity funds lost about 3.12%, and fixed income funds only declined about 0.27%. So this was a good story, but I do want to wrap up the one-year period of time. This was one of the worst one-year periods that we have seen since 2008. So when we take a look at this, and I'm sure everybody's read that as well. The DOW posted I think the worst return since 2008, the S&P, et cetera. The NASDAQ actually had worse years, but 2008 was about twice as much as these losses. So I do want to do a little comparison - contrast. So the average closed-end fund is down about 11.23% for the year of 2022. Now, if we look at 2008, and again, this was the worst return this year that we've seen since 2008. 2008 was much worse. The average closed-end fund was down 30.30%.
But what is maybe more alarming is in 2022, we saw that all funds were down about 11.23%. Equity funds were down about 9.98%, and fixed income funds were down 12.21%. That is something we do not normally see. First of all, we generally don't see fixed income doing that poorly. I mean, we've always been in what I'm going to call a bull market for fixed income funds. That's not the case any longer, right? Interest rates are rising. There's an inverse relationship. So we saw a very correlated performance for the one-year mark. And I know people say, well, 9.98% minus versus 12.2% is not highly correlated, but it certainly is very correlated at that. So those are the things that we saw. But for 2022, there was some light at the end of the tunnel, if you will. I mean we saw natural resources funds up 22.06%.
We saw energy Master Limited Partnerships up 20.24%. And then on the bottom side we saw convertible securities, which by the way had a fantastic 2020 and 2021, but they were down 23.92% for the year. Emerging markets were down 23.67%. And I know people are probably listening going, wow, all these numbers coming at me. But the reason I'm highlighting this is it is showing us some opportunities and changes on the fixed income side.
Everybody thought we were going to have this inflationary period. It didn't turn to pan out. I mean we're in inflation. But at the long end of the curve, people are discounting it that the Fed's going to take care of it. It's loan participation funds that mitigated losses better than other funds in the fixed income universe, but it still lost 4.45%. The US mortgage closed-end funds down 5.97%, but the big losers were munis, High-yield muni lost 21.14% for the year. The next worst category was emerging market debt losing about 18.99%. So, this really was a story about differences and about changes, certainly alarmed about the year, but wonderful quarter end. I think it sets us up for a better 2023.