Wednesday, 09 July 2025 02:52

Income Investors, Now is the Time to Watch the Curve

Written by
Rate this item
(0 votes)

As of June 2025, the Federal Reserve has maintained its key interest rate, creating a rare window for investors to take advantage of elevated yields at the short end of the bond curve. 

 

With short-term yields currently exceeding those of intermediate maturities, ultrashort bond funds have emerged as an efficient way to earn income without assuming significant duration risk. These funds, which typically hold maturities under one year, offer a balance of liquidity, low volatility, and competitive returns. Among the top active strategies is Pimco’s Short-Term fund, which combines nimble credit allocation with disciplined risk management, avoiding complex securities and leaning on deep market expertise. 

 

For investors seeking tax-efficient income, Vanguard’s Ultra Short-Term Tax-Exempt fund delivers high-quality municipal bond exposure with an ultrashort duration, making it a smart pick in rising rate environments. 


Finsum: These strategies give investors a way to capture attractive yields while staying agile amid ongoing rate uncertainty.

Contact Us

Newsletter

Subscribe

Subscribe to our daily newsletter

Top