Historically, bonds have played a crucial role in diversifying portfolios’ risk and reducing overall volatility.
As we discussed in Saxo’s recent quarterly outlook, central banks might need to keep a hawkish bias as inflation remains elevated despite the economy decelerating sensibly. Therefore, long-term rates might continue to soar while the front part of the yield curve remains anchored.
Within this environment, we favor high-quality short-term bonds. Yet, as we approach a peak in yields, income seekers are presented with the opportunity to lock in decades-high yields.
Below, we want to provide a comprehensive list of short and long-term high-grade for inspiration purposes.