Federated Hermes CIO Says It’s Too Early to Buy Bonds Aggressively, Favors Shorter Duration
JH Kim
Summary
- Federated Hermes CIO R.J. Gallo said it is still too early to buy bonds aggressively because U.S. Treasury yields and interest-rate volatility remain high.
- Gallo said Treasury yields could rise further before the market stabilizes if bond funds face additional selling.
- He currently favors a short-duration strategy in bond investing and added that mortgage-backed securities (MBS) could become attractive if interest-rate volatility eases.
Forecast Trend Report by Period
With U.S. Treasury yields at their highest levels in decades, Federated Hermes Chief Investment Officer R.J. Gallo said it is still too early to buy bonds aggressively because interest-rate volatility remains high.
Walter Bloomberg reported on October 30 that Gallo expects Treasury yields could rise further before the market stabilizes if bond funds face additional selling.
For now, he prefers to keep duration short in bond portfolios.
Gallo added that mortgage-backed securities, or MBS, could become an attractive investment if interest-rate volatility eases.
JH Kim
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