JPMorgan: Longer-term bonds are now more attractive

On January 20th, Jin10 Data reported that Iain Stealey, International Chief Investment Officer for Fixed Income at JPMorgan Asset Management, said in a report that now is a good time for bond investors to gradually extend maturities or increase bond risk exposure that is sensitive to intrerest rate changes. As valuations are attractive and the yield curve is positive, investors may consider purchasing longer-term bonds. He said, “Intrerest rate rise may rekindle the correlation between stocks and bonds, that is, a stock decline leads to a bond rebound. However, the main risk is the possibility of additional fiscal stimulus, which may lead to a rise in inflation. Any further stimulus measures that trigger rises and inflation shocks could lead to a Fed interest rate hike cycle that the market is not yet prepared for.”