Should you lock in those high yields right now? Here's what Wall Street is saying, and how to invest

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Wells Fargo Investment Institute's head of global market strategy, Paul Christopher, says such an opportunity may not come again in the next couple of years.

A bond bear market has dominated this year. But with 10-year Treasury yields surging to 5% - a 16-year high , many investors might now be tempted to lock in those high yields and buy into bonds. The 2-year Treasury yield was at 5.16%, after hovering at levels last seen in 2006 earlier in the session. Volatility in the bond market may, however, cause some hesitation among investors. Wall Street weighs in on the right moves to make.

He said in a Thursday note: "Within fixed income, we remain overweight higher-yielding sectors, including high yield, and emerging market bonds on still attractive absolute yield levels and reasonably supportive fundamentals." Are rates peaking? Some in the fixed income world are predicting that rates are peaking, which presents another argument for buying into longer-term bonds.

 

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