Investors lured by high yields could be making a mistake if they are buying bonds these days, according to Strategas.
Meanwhile, investment grade bonds are yielding even more, with the ICE BofA U.S. Corporate Index 's effective yield sitting at 6.3%.
Bond yields move inversely to prices, so when prices fall, yields move higher, and vice versa.
Strategas is of the mindset that until the market suggests otherwise, the trend in yields is up.
In fact, not many investors made real money playing against the trend in the four decades when yields were falling, Verrone pointed out.
Persons:
Chris Verrone, Verrone, — CNBC's Michael Bloom
Organizations:
Federal Reserve, Treasury, ICE
Locations:
Strategas