Skip to Content

Market Decode: 3 questions top of mind for bond investors now

Tariff-related trade disputes have been causing unexpected volatility in the bond markets. Here’s what you need to know.

BONDS ARE AN IMPORTANT PART of a balanced portfolio, offering potential stability and predictable income. But like equities, they’ve been experiencing extraordinary volatility as a result of current policy uncertainties.

“We know investors have concerns about what’s going on in the bond markets and what it could mean for their portfolios. But there’s also a risk in making sudden decisions based on ominous headlines and rapidly changing events,” says Matthew Diczok, head of Fixed Income Strategy for the Chief Investment Office (CIO), Merrill and Bank of America Private Bank.

In the video above, he offers insights that can help put the recent volatility in perspective and suggests ways investors can consider taking advantage of current higher yields. “Treasurys, like the U.S. economy and the dollar, remain pivotal to the global economy. That’s not something we see changing, even with disruptive tariff battles,” he adds.

For ongoing help keeping up with the risks and potential opportunities in today’s markets, check out Market Briefs, featuring up-to-the-minute market commentary, and tune in regularly to the CIO's Market Update audiocast series.

Related Insights

TOP