Bond investors are increasing portfolio risk, predicting the Fed will maintain rates unchanged. The U.S. economy is in a “Goldilocks” moment, prompting investors to buy more corporate bonds and lengthen portfolios. The Fed is expected to keep rates steady at 4.25%-4.50%. Futures indicate a 65% chance of a rate cut in September. Anxiety in the bond market is easing, with clients adding duration. Credit spreads to Treasuries have narrowed, showing confidence in the U.S. economy. Bond volatility is low, indicating stability. Some investors remain cautious, seeking relative value opportunities in high-quality portfolios.

Read more at Yahoo Finance: Bond investors warm to risk, with Fed staying put in ‘Goldilocks’ economy