The 30-year US Treasury yield climbed to 5.31% last week, its highest level since 2007, while the 10-year yield surpassed 4.7%. The Treasury Department announced it would more than double its government bond purchases targeting the long end of the yield curve, offering short-term relief to the fixed income market. Portfolio managers recommend focusing on the front end and intermediate part of the yield curve, with maturities ranging from one to 10 years, as well as bond ETFs like the Vanguard Core Bond ETF (VCRB) offering a 4.88% yield. Some advisors also suggest international diversification with non-US debt to hedge against potential erosion of the US dollar.
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