“We continue to see yields above 4.25% as attractive levels to extend duration and build greater portfolio resilience against potential growth risks,” Sara Devereux, Vanguard’s global head of fixed income, wrote in the report.
(April 22): Vanguard is boosting its holdings of Treasuries, taking advantage of higher yields following the Middle East conflict to lock in rates and hedge against the risks of a potential growth slowdown.
In the asset manager’s latest quarterly outlook, its active fixed-income group said it has been adding exposure to longer-rated bonds as 10-year yields rose above their estimated “fair-value” range of 3.75% and 4.25%. The benchmark rate, which steers everything from corporate borrowing costs to mortgage terms, has climbed more than 30 basis points to around 4.3% since late February, as the Iran conflict drove oil prices higher and reignited inflation concerns.
