Bonds and Value

As the 10-year pushes past 3%, we’re left to wonder whether flows will begin to favor bonds again. In a world of 2.5% inflation, bonds might seem like a sucker’s bet. In a world of 8-10% inflation, even more so.Yet, we often buy instruments with little long-term value but plenty of short- or medium-term appreciation potential. The 10-year is at an important inflection point, poised between a strong rebound and a significant selloff. Its next moves are critical not only from an investment standpoint, but in terms of what to expect from the broader economy.continued for members…