Financial Times – 8/7/13
Michael Kastner, principal at Halyard Asset Management says there is a risk that bond yields rise further as economic growth for the second quarter and the July jobs number is revised upwards.
“It looks like the economy has underlying strength and as an investor you have to respect the bond selling we saw in May and June when the taper was introduced by the Fed.”
Mr. Kastner says caution over Treasuries is warranted, in spite of much higher yields since May.
“Buying the 30-year around 3.75 per cent may appeal to some investors, but there is a risk that its yield rises to 4 per cent and that’s a meaningful hit to a portfolio.”