The 10-year Treasury yield topped 4.9% on October 17, 2024, its highest level since November 2023, driven by wholesale inflation data and oil prices exceeding $100 per barrel. Experts at Wells Fargo and BondBloxx expect continued rate volatility, with the yield potentially breaking through the 5% psychological threshold. They advise investors to focus on the short or intermediate part of the yield curve to manage duration risk. Among the opportunities, municipal bonds are offering tax-equivalent yields around 6.87% for top-bracket U.S. taxpayers.
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