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Bond Funds Ready to ‘Load Up the Boat’ at Higher Treasury Yields

  • Recession risk bolsters case for owning longer-end Treasuries
  • 3.5% yield ‘a big buying opportunity,’ Pimco’s Kiesel says
Updated on

After months of heightened market volatility that savaged the performance of bond funds, investors are focused on salvation.

With Federal Reserve officials beating the drum on their commitment to bringing down the highest inflation in decades, bond managers are relishing the prospect of another jump in Treasury yields that might allow them to get back in and put some of their billions of dollars in funds to work at higher rates. And they are particularly honed in on longer-dated Treasuries.