Summary
- This year’s sharp rise in treasury yields creates an attractive opportunity in short-term bonds heading into 2023 as the Fed slows the pace of rate hikes.
- We favor transitioning from floating-rate notes to fixed-rate notes going into 2023 now that interest rates have reset at considerably higher levels and as the Fed nears the end of its hiking cycle.
- The market is expecting the Fed to cut as soon as next summer, but we believe the current odds of 20% could rise in the coming months.
For further details see:
Attractive Opportunity In Short-Term Bonds