It's not easy to tell when yields will peak, but buying bonds doesn't require investors to do that. The upside that can be brought about by weakening economic growth has been expanded, while the costs of waiting for this to happen have declined. There have been no significant enough fundamental changes so far, and it is difficult to anticipate a further sharp decline in US Treasury yields from current levels. The US economy is still absorbing rising borrowing costs, and estimates of potential growth rates and neutral interest rates are rising. Inflation has also stabilized at a high level, and high commodity prices still pose a risk. The 10-year US Treasury yield has yet to fully catch up with the growth rate of long-term nominal GDP. This makes the bond's return structure asymmetrical. A yield of more than 5% can provide more adequate coupon protection when investors enter the market too early, and bonds may also reap capital gains once the economy is impacted by significant growth. Investors were willing to buy on dips when bonds fell last week, indicating that the market is beginning to recognize this risk-reward relationship.

It's not easy to tell when yields will peak, but buying bonds doesn't require investors to do that. The upside that can be brought about by weakening economic growth has been expanded, while the costs of waiting for this to happen have declined. There have been no significant enough fundamental changes so far, and it is difficult to anticipate a further sharp decline in US Treasury yields from current levels. The US economy is still absorbing rising borrowing costs, and estimates of potential growth rates and neutral interest rates are rising. Inflation has also stabilized at a high level, and high commodity prices still pose a risk. The 10-year US Treasury yield has yet to fully catch up with the growth rate of long-term nominal GDP. This makes the bond's return structure asymmetrical. A yield of more than 5% can provide more adequate coupon protection when investors enter the market too early, and bonds may also reap capital gains once the economy is impacted by significant growth. Investors were willing to buy on dips when bonds fell last week, indicating that the market is beginning to recognize this risk-reward relationship.