Q: Would this be a good time to start buying medium- to long-term bonds? If so, what bond categories and durations would be optimal? My intention is to hold whatever instrument I buy to its maturity.
Robert
Robert
5i Research Answer:
On the Canadian side, with rates likely close to a more normalized level, we think this can make sense for stability but we would not see an outright need to go particularly long-term in maturity here as the extra yield from longer term bonds isn't overly enticing compared to short term.
On the US side of things, bond yields have seen some strength over policy uncertainty and potential inflation impacts which is likely getting a bit overdone so from a timing perspective adding some longer-term US bond exposure might make a bit of sense here but we don't think an investor needs to 'rush' into it either.