With 10-year treasury yields breaching the 5% market and reaching their highest level since 2007 on Tuesday, the market has been spooked, but bond investors are thinking more seriously about whether this may be an opportunistic moment in fixed-income. Many investors have focused on short-or ultra-short-term bonds lately to sidestep bond market volatility that has pummeled prices as rates rise due to concerns over broader economic issues like inflation and the federal deficit. But as yields rise, the risk-reward calculation for medium-term bonds โ those in the 5-to-10-year range โ is becoming more favorable for investors.
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