Bonds: Time to get out of the dugout?
The market detects exhaustion signals in the stock market rally and is once again focused on bonds. But the risk of new rate hikes complicates the return to fixed income.
Global stock markets have risen 17% since January, with even European and Spanish markets seeing double-digit gains. However, some investors are growing cautious and considering shifting their investments to bond markets, which have had a rough year but are becoming more attractive with higher yields. The US 10-year bond, for example, has reached a yield of over 5.3%, making it appealing to investors, with 30% of fund managers considering moving from stocks to bonds at current yields.
Experts, such as those at ING, expect interest rates to peak soon and then decline, making bonds a potentially attractive investment.
Written by urgent.news from El Pais Economia's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
