

In late October, VettaFi hosted an interactive virtual event featuring market leaders from State Street Investment Management, Janus Henderson, and Horizon. During the presentation, advisor sentiment polls revealed a decisive shift in how many are approaching their fixed income allocation.

Bonds are paying the best yields in years and still dragging portfolios into the red, leaving investors scrambling for a defensive asset that actually defends. A growing group of Wall Street managers thinks the answer involves shorting Treasuries outright.

U.S. bond yields are rising, providing an increasingly attractive alternative to pricey stocks. Trump's unorthodox policy may be causing this trend to accelerate.


The global competition for capital remains the key dynamic keeping yields elevated. Notably, all of the September increase in 10-year Treasury yields came from real yields, as implied by the TIPS market.

Japan, Europe, and the U.S. were feeling the fallout from France, where yields on its benchmark 10-year note climbed closer to 5%, the highest since 2002.

Rolling coverage of the latest economic and financial news

The long-run return forecast for the Global Market Index continued to edge higher in September. Fueled by a decline in financial markets last month, GMI's projected return increased for a fifth straight month.