From “CNBC”:

Long-term bond investments, such as the iShares 20-year Treasury ETF (TLT), are expected to perform well in 2023, according to VettaFi’s Todd Rosenbluth. He suggests that longer-term products will see the most benefit if the Federal Reserve cuts interest rates more than expected.

BNY Mellon’s Benjamin Slavin also notes a shift in investor behavior, with money moving from short-term to intermediate duration products. Investors are looking to capture higher yields and potential capital appreciation as rates back up.

In the current market, advisor and retail investors are showing an interest in locking in higher yields and capturing potential capital appreciation. This shift in investor behavior toward longer-term bond investments could be influenced by potential Federal Reserve interest rate cuts.



Read more: This bond ETF will deliver a big return in 2024: VettaFi’s Rosenbluth