Short-Term Bonds Look Attractive as Long-Dated Yields Hit Multidecade Highs
Dow Jones
Yesterday
1436 GMT - Short-dated bonds look more favorable than their long-dated peers, which have climbed to multidecade highs, Aberdeen Investments' Mark Munro says in a note. "Short-dated credit, across both sovereign and corporate bonds, allows [investors] to benefit from today's higher yields while reducing their exposure to the interest-rate volatility," he says. High oil prices and steady growth are causing investors to price in multiple interest-rate hikes by major central banks, contributing to rising sovereign bond yields. U.S. 30-year Treasury yields hit 5.693%, the highest since 2002, Tradeweb data show. U.S. 2-year Treasury yields fall 4.2 basis points to 4.848%.
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