Reported about 1 year ago
Despite the latest U.S. nonfarm payroll data exceeding expectations, expectations of slowing inflation lead to the market believing the Federal Reserve will cut rates this year. The yield on the U.S. 10-year Treasury has dropped from its peak of 4.7%, driving a strong rebound in investment-grade corporate bonds. With the likelihood of the Federal Open Market Committee holding rates steady in June, positioning in investment-grade corporate bonds now could provide high interest returns in the short term, with potential capital gains in the medium to long term from the rate cuts. The article also discusses the benefits of long-term investment-grade bonds and higher-yielding financial bonds during times of rate cuts.
Source: YAHOO