WisdomTree Mortgage Plus Bond Fund

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.

One could use the word anomaly for Q3 of the stock market. S&P 500 performance for the first two months of the quarter was driven by the “magnificent seven” large-cap tech-oriented stocks.

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.