Investors may want to focus on front end of yield curve — as Street anticipates next Fed meetings

📰 source: cnbc_topnews · 💼 business

bond investors should focus on the front end of the yield curve, says allspring global investments' noah wise. the firm's head of global macro strategy suggests short-term treasurys over long duration as part of a diversified portfolio.

wise told cnbc's 'etf edge' the market is pricing in a couple of hikes over the next couple of years, making yields north of 4% with relatively low risk attractive. he also prefers u.s. credit over european, and sees opportunities in emerging markets, particularly latin america with double-digit yields.

this week's fed decision to leave rates unchanged hasn't changed his approach. "opportunity always lurks where uncertainty is found," he wrote, noting tactical adjustments to short-term treasury exposure to exploit volatility.

why it matters: front-end yield curve focus signals positioning for fed hikes, with 4%+ treasury yields and latin america double-digit returns as key plays.

source: cnbc_topnews
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