BOND TRADERS LEAN INTO ‘SWEET SPOT’ AMID DOUBTS ABOUT FED’S PATH
https://s.yimg.com/ny/api/res/1.2/lsJwEBKfvnXdRF2YuS2IrA--/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD04MDA-/https://media.zenfs.com/en/bloomberg_holding_pen_162/267c078c894b19387eae97a416412124
✍️ Bond-fund managers are sticking to trades that will likely pay off even if the Federal Reserve's path is again knocked off course by surprising turns in the economy.
👉 Bond-fund managers are sticking to trades that will likely pay off even if the Federal Reserve's path is again knocked off course by surprising turns in the economy. 👉 Middle-maturity Treasuries are seen as a winning strategy due to their ability to throw off interest payments and be more insulated from price swings. 👉 The Fed's shift back to cutting rates has been supported by a steep slowdown in the pace of hiring. 👉 The president's tariff hikes threaten to rekindle inflation. 👉 The belly of the yield curve, or those maturing around the 5-year range, has been one of the strongest performing segments this year.
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