Is the bond market peaking?
Probably not, according to several fixed income experts at Schroders, which recently hosted a roundtable discussion on fixed income for reporters in New York City.
"I don't think fixed income's peaked," said Andy Chorlton, head of U.S. multi-sector fixed income at Schroders.
He added, though, that he thinks risk assets may have peaked for this cycle.
"I think the search for yield is peaking in terms of risk assets," Chorlton said.
According to Chorlton, Treasuries at least below 5 years look like a "decent value" following the selloff that started late last year.
In contrast, spreads across sectors are expensive even after the small correction in February. The S&P 500 fell into correction territory — down more than 10% — in early February.
Chorlton explained to ThinkAdvisor in an email that "fixed income in general hasn't necessarily peaked given the cheapness in short Treasuries, more risky fixed income sectors like credit, maybe have."
Earlier this month, the U.S. 10-year Treasury yield had climbed to four-year high of 2.95% earlier in the month after the strong January jobs report. The 10-year Treasury note again jumped to around 2.917% Tuesday afternoon after Jerome Powell, the new Federal Reserve chair, said the central bank could raise rates more than three times in 2018.
