BKLN - Is The U.S. Bond Market Poised For Recovery?

2024-06-06 10:00:00 ET

Summary

• The sharp drop in Treasury yields in recent days has revived chatter that the worst for the bond market may be over.
• The performance profile for a wide range of US bond market niches has certainly improved lately, based on 2024 returns.
• A key factor driving yields lower is renewed concern that US economic activity is slowing, which has revived expectations that the Federal Reserve will soon cut interest rates.

The sharp drop in Treasury yields in recent days has revived chatter that the worst for the bond market may be over. It's still early to confidently forecast that scenario, but the odds for recovery are looking better these days after a two-year bear market for much of the asset class following the start of Federal Reserve rate hikes in early 2022....

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