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Bond managers sense an opportunity with yields below Fed's rate
Bond managers sense an opportunity with yields below Fed's rate
Even as the Federal Reserve has made clear it intends to raise rates further to insure continued progress on inflation, and that it's not contemplating the eventual rate cuts traders are pricing in, investors are already being rewarded for seeing value in the Treasury market. With this week's increase to 4.25%-4.5%, the central bank's range for the federal funds rate exceeds the highest-yielding Treasury securities - a warning to investors against waiting any longer to buy.
Even as the Federal Reserve has made clear it intends to raise rates further to insure continued progress on inflation, and that it's not contemplating the eventual rate cuts traders are pricing in, investors are already being rewarded for seeing value in the Treasury market. With this week's increase to 4.25%-4.5%, the central bank's range for the federal funds rate exceeds the highest-yielding Treasury securities - a warning to investors against waiting any longer to buy.