From Yahoo Finance: 2025-05-05 13:29:00

Bond investors are cautious ahead of the Federal Reserve’s meeting, remaining neutral due to U.S. trade policy concerns. Duration benchmarks guide fixed-income positioning, with long-duration bets reducing in anticipation of rate stability. Trump’s tariff impact raised yields sharply, triggering market volatility. Powell may address inflation risks and possible recession.

Market volatility persists as U.S. tariffs fluctuate, urging investors to remain cautious and de-risk portfolios. PGIM Fixed Income advises focusing on the front end of the yield curve, driven by Fed policy. Uncertainty surrounds the back end, particularly 30-year bonds. Market anticipates Fed rate cuts in July, expecting 77 basis points of easing this year.

J.P. Morgan survey shows most clients are neutral on Treasuries, with a decreasing net long position. Investors like Nuveen lean towards the front end of the curve, anticipating Fed cuts. Policy uncertainty and lack of clarity deter large bets. Market remains on edge amid ongoing trade tensions and economic concerns.

Read more: Bond investors stick to neutral stance ahead of Fed meeting