The Federal Reserve is widely expected to start cutting interest rates Wednesday afternoon.
Those yields are expected to start coming down sharply as the Fed begins to ease back on generationally high rates.
Adding some duration Duration refers to a bond's price sensitivity to changes in interest rates.
A bond yield moves inversely to its price, so that when bond prices rise, yields decline.
Though investors in the space may be concerned about prepayment risk, especially as interest rates come down and homeowners look to refinance, Cetera says that worry may already be priced in.
Persons:
Kathy Jones, Tony Miano, Jones, Schwab's Jones, Gene Goldman, Goldman, James Shagawat, Shagawat
Organizations:
Federal Reserve, Treasury, Schwab Center, Financial Research, Wells, Wells Fargo Investment Institute, York Life Investments, Investment Management, Investors
Locations:
Wells Fargo, AdvicePeriod, Paramus , New Jersey