It is now or never. With 10-year US Treasury yields spiking above 5% to their highest level since 2007, investors are staring in the face of a generational opportunity.
The past 18 months have been a bloodbath for bond markets. After a tumultuous 2022 which saw inflation skyrocket to its highest level in four decades and interest rates quickly follow suit, this year was lauded as the return of fixed income.
As a result, investors started to add duration risk to portfolios at the start of 2023 to take advantage of the attractive yields on offer amid bets the Federal Reserve would cut interest rates by the end of the year...
This article first appeared in ETF Insider, ETF Stream's monthly ETF magazine for professional investors in Europe. To read the full article, click here.