Chart in a Minute

Use these simple visuals to help illustrate technical market perspectives to clients.

Are your clients still on the sidelines regarding fixed income?

7/15/2024

We think the longer-term outlook for bonds remains quite favorable, especially given where yields are today.

Yields to Worst

Key takeaways:

  • If your clients are on the sidelines waiting for the Federal Reserve to cut interest rates before buying more bonds, they’re probably not alone. But how much longer will their window for attractive yields remain open?
  • Bond yields are substantially higher than just before the Fed’s recent rate-hike cycle began. But they’re also lower than back in October 2023, which may prove to be this cycle’s highs. This chart provides a snapshot of these points.
  • In today’s environment, we believe it’s worth remembering that starting yields tend to drive fixed income total returns over the long term. And given where yields are today, the long-term outlook for fixed income seems quite favorable.

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