`There Are No Screaming Buys'

Spreads between Treasuries and other bonds are narrowing, leaving investors slim pickings

For bond fans, it looks like hard work ahead. Many economists see a friendly economic and interest-rate outlook. There's little fear of those nasty, principal-eroding interest-rate spikes. Trouble is, the supply of new government securities is shrinking and interest-rate spreads between Treasuries and other issues are narrowing, with the result, experts say, that bonds are generally fairly valued. The bottom line: The bond market for the time being will be attractive mainly to people who like a good challenge.

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