The central banks have already slowed down in their tightening of monetary policy, and now the interest rate peak is in sight. Capital explains why this summer is a good time to put bonds in the portfolio.
2022 was a terrible year for investments, almost all asset classes fell into the abyss. This also applied to bonds, which in themselves are considered a defensive element in a balanced portfolio. The reason for this was the massive increase in interest rates, which caused the prices of issued bonds to plummet as a result of the adjustment in yields. As a result, around ten-year federal bonds now have a yield of around 2.3 percent again, and US bonds with the same term even 3.5 percent – always calculated on the date of maturity.
Source: Stern
