WisdomTree Yield Enhanced U.S. Aggregate Bond Fund

The Federal Reserve is likely to remain patient on rate cuts, and investors should focus on managing bond volatility with a barbell strategy, according to a WisdomTree expert. The Treasury yield curve is expected to steepen further, favoring short-duration bonds over longer-term maturities.

The US bond market has had a rough ride for much of the past two years, but the powerful rally over the last two months suggests the worst is over.

As the Treasury curve flattened and yields rose, spreads on investment-grade corporates and taxable municipals continued to show signs of weakness.

The bond market is finally bottoming out over the coming months and should begin a major rally into 2023.

Dan Ivascyn, Group CIO, discusses the evolving yield curve and how bonds can help bolster portfolios against negative economic scenarios, like market shocks or a slowdown in growth.