Federal Reserve Chairman Jerome Powell testified in Congress yesterday that a rate cut may be near. That's music to the ears of the bond market, because it offers more fuel for extending the rally in fixed-income assets.
Every major slice of the US bond market is posting year-to-date gains, based on a set of ETFs, and the prospect of a rate cut suggests that the strong appetite for fixed-income assets will endure for the foreseeable future. Leading the way for 2019's rally: long-term corporate bonds.
The Vanguard Long-Term Corporate Bond Index ETF ([[VCLT]]) closed yesterday