Higher Yields Seen as Opportunity for Fixed Income
Dow Jones
3 hours ago
1348 ET - The time is ripe to deploy excess cash, Truist's Chip Hughey says, as bond yields rise while money market funds hold more than $8 trillion, according to the St. Louis Fed. Hughey says expectations of a Fed hike have pushed short-term yields "significantly above" the fed funds rate for the first time in years. He also likes exposure to three-to-10-year bond yields and prefers U.S. fixed income over international alternatives. As for corporate bonds, spreads are tight, but "the reality is that the yields that investment grade and high yield corporates are generating is very elevated on an absolute basis."
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