Yesterday, the Consumer Price Index (CPI) number came in lower than expected, highlighting that inflation rose slower than economists predicted. This news drove the 10-year Treasury yield down 13.5 basis points (bps), sending yields lower and erasing last week’s 10bps pop.
Why does this matter?
The DRL Group has been sharing with prospective and current clients that now is an opportune time to purchase bonds. While there is a lot of uncertainty in the market, with that comes an opportunity to buy quality paper and lock in strong yields. No one can predict the market direction; however, we believe that yields won’t stay at this level long. Individuals can lock in tax-free returns between 4% to 5%, with fixed coupons ranging from 2% to 5.5%. We last saw the market at these levels over a year ago. It’s important to mention that these periods of heightened yields did not last long either.
The DRL Group has been trading in the bond market for 36 years and in extreme market cycles in every direction. We have the experience to navigate any kind of market and take great pride in advising our clients through all uncertainties. Our extensive experience in fixed income bonds instills confidence in our clients, knowing that they are in capable hands.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
