Financial Times – 1/20/15

“Volatility always increases at the start of the year, but this time, we are really seeing people buying into the US bond market on the assumption benchmark rates will stay very low until at least 2016,” said Michael Kastner, a managing principal at Halyard Asset Management.

Mr Kastner said such “aggressive” bond buying was “risky”.

“There’s a false sense of security out there among many investors regarding the Fed’s next moves,” he said. “Look at how low Treasury yields are right now, which means there’s not a lot of protection when rates start to rise again.”

US bonds boosted as rate rise moves back