Bond Market Faces Quandary After Fed Signals It’s Almost Done
- With Treasury yields rising, debate is how much risk to take
- Sweet spot is in shorter maturities: Columbia Threadneedle
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Bond investors face the crucial decision of just how much risk to take in Treasuries with 10-year yields at the highest in more than a decade and the Federal Reserve signaling it’s almost done raising rates.
While individuals are piling into cash, for many portfolio managers the debate now is about how far to go in the other direction. Two-year yields above 5% haven’t been this lofty since 2006, while 10-year yields eclipsed 4.5% on Friday for the first time since 2007.