U.S. government bonds are poised to move through the 5% mark on the bond market. Treasury selling is on the rise as U.S. economic data shows that there is strength. This makes it difficult for the Federal Reserve to justify cutting interest rates anytime in the near future. MarketWatch explains where bond yields could be headed:
Michael Gregory, a fixed-income analyst at BMO Nesbitt Burns, also
expects the benchmark yield to pierce 5% imminently. But he expects
some seesaw price action for the rest of the year and believes the
yield will slip lower before it reaches 5.25%.
If you are interested in investing in the bond market, carefully consider what your next move will be. With yields in flux, and relying on economic data, careful consideration is necessary before investing.