Cautious on bonds

DESPITE the rally in major bond markets on Thursday – resulting in yields falling sharply – as investors scaled back expectations on the pace of interest rate hike by the US Federal Reserve (Fed) to quell inflation, the sentiment towards this fixed-income category in general remains cautious.

For instance, Laffer Tengler Investments chief investment officer Nancy Tengler was quoted by Bloomberg as saying it is difficult to see a way clear to make a lot of money (in bonds), especially when real rates are negative.