Reported 8 months ago
On June 19, 2024, US May Consumer Price Index (CPI) stayed flat compared to April, with a 3.3% year-on-year increase, lower than economists' forecast of a 0.1% monthly increase and 3.4% annual increase. Market expectations for a Fed rate cut in September rose to 70% according to Fed fund futures. Once the Fed cuts rates, it will bring a bullish market to the bond market, with long-term bonds being the most advantageous. Investment-grade bonds are in a historically significant discount position, creating a prime opportunity for bond purchases. KGI Funds suggests that cooling inflation and rising rate cut expectations will benefit bond investments across various credit ratings. It is recommended that investors take advantage of the current relatively high yields before the interest rates start to decline.
Source: YAHOO