Economics
Eaton Vance Fund Stockpiles Cash After Making 15% on Bond Rally
- Bond market losing allure amid hunt for yield, Gaffney says
- Limited scope for bond yields to rise in near term, NAB says
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The hunt for yield is making the bond market less attractive, said Kathleen Gaffney, whose Eaton Vance Bond Fund is surging this year after plunging in 2015.
Treasury 10-year yields, the benchmark for everything from U.S. mortgages to dollar bonds in developing nations, dropped to a record this month as investors sought alternatives to negative interest rates in Europe and Japan. The Federal Reserve will keep its benchmark unchanged when it meets tomorrow and the following day, based on a Bloomberg survey of economists.