Allspring Global Investments is advising bond market investors to shift their focus toward the front end of the yield curve, favoring short-term Treasurys over long duration positions. Noah Wise, the firm’s head of global macro strategy, considers yields above 4% with relatively low risk attractive given current monetary policy conditions, with markets pricing in multiple Fed rate hikes over the next couple of years. Beyond fixed income, Wise identifies opportunities in U.S. credit markets and emerging economies, particularly Latin America where yields reach double digits. The Fed’s decision to hold rates steady this week has not altered his investment strategy.
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