High inflation data made the fixed income market trickier to navigate in April. However, there’s still room for profit to be found. Expectations for potential Federal Reserve rate cuts continue to shift.
While some at the start of the year predicted as many as six rate cuts in 2024, doubt is bubbling over whether we’ll see any rate cuts at all this year. Currently, the market consensus sits closer to two potential cuts this year, but these forecasts are subject to change.
Looking at fixed income portfolios, options remain on the table for investors to find potential value. While investors tempered rate expectations in April, U.S. Treasury yields rose. BondBloxx research shows that this led to negative returns for U.S. Treasury bonds past the one-year duration. The decline on returns steepened for longer duration U.S. Treasuries, while short-term options mostly either saw mild success or mild drops for the…
