With 10-year Treasury yields at their highest since shortly before the financial crisis, it's a good time to add duration to your fixed income portfolio, according to Charles Schwab fixed income strategist Cooper Howard.
"If I were a betting man, I think the odds favor moving lower rather than higher," Howard said.
Even if there is more upside in yields ahead, Howard still thinks the risk/reward looks attractive on longer-term bonds right now.
US10Y YTD mountain US 10-year Treasury Where to add duration depends on your risk tolerance, according to Howard.
"This is why we still maintain a favorable view toward extending duration and view the 10-year Treasury yields above 4% as an opportunity to add duration exposure," Alvarado wrote.
Persons:
Charles Schwab, Cooper Howard, Howard, Jerome Powell, Wells Fargo, Luis Alvarado, He's, Alvarado, Michael Bloom
Organizations:
Federal, Investors, Treasury, Bloomberg Municipal Bond Index, Bloomberg U.S, Corporate, Treasury Bond
Locations:
Jackson Hole , Wyoming