Bond yields enter new trading range, time to add duration: Strategist

• Bond markets have seen a dramatic adjustment, with US and Japanese yields at multi-decade highs.
• Factors include tension between monetary and fiscal policy, global growth, tight supply chains, and labor market dynamics.
• Recommendation: Incrementally add duration to bond portfolios, as current higher yields offer value and tighter monetary policy is expected to eventually slow growth, benefiting bond prices.

Allspring Global Investments' George Bory notes that bond markets have undergone a dramatic adjustment, with U.S. and Japanese yields reaching multi-decade highs. He attributes this to a combination of monetary/fiscal policy tension, global growth, and tight supply chains. Bory advises investors to incrementally add duration to their portfolios, as he believes current higher yield levels offer value and tighter monetary policies will eventually weigh on growth, benefiting bondholders.