Anyone have any knowledge or theories on the direction of bonds for the next year?
I’d like to lock in a 10 year or longer at a 5% yield, but I don’t think it’s going to happen. While the terminal rate of the hikes is forecasted for 5%, between the recession predictions and the Fed expected to cut rates back down in 2024 and 2025 I don’t think the yield curve will correct with long term rates going higher but rather short term rates lowering back down. Is the 4% yield the best it will get on long duration? I tend to think so but I’m far from an expert. I know bonds aren’t sexy but I think they plan an important role in most investment portfolios.