Insights & Ideas

Fixed income asset prices rallied during the first quarter, after the Federal Reserve paused rate hikes at the “neutral” level. Here’s how to invest in the new rate environment.

As expected, the Federal Reserve left interest rates unchanged at its March policymaking meeting, but surprised markets with a shift to an easier policy stance.

Although the dollar’s rise has stalled recently, there are reasons to believe the bull market isn’t over.

The Federal Reserve’s dovish turn at its policymaking meeting in January was a surprise for the markets, coming only six weeks after the Fed last raised rates and indicated further tightening was likely. What happened?

Despite a recent increase in risk appetite, we still see plenty of reasons for fixed income investors to remain cautious in 2019.

The worst may be over for the bond bear market.

After more than two years of steadily rising interest rates, we believe 2019 could mark the peak in U.S. Treasury yields for the current business cycle. However, while the prospect of more stable or lower interest rates may be positive for bond investors, we expect the road ahead to be bumpy.

As the Fed approaches its long-term interest-rate target, how should you approach your bond investments?

Keeping an eye on these market indicators may help investors gauge whether the Federal Reserve is near the end of the cycle or likely to overshoot.