The strong returns over the quarter added to the good performance of the diversified funds for the previous nine months. |
The U.S. economy is doing okay and you have global growth doing fairly well. That's encouraging yields higher. A 5 percent yield in 10-year Treasuries represents fair value. |
The U.S. will add more jobs and I expect that will support the view that the Fed will go to 5 percent. There's enough momentum to take bond yields higher. |
There's a bit more optimism in terms of the growth outlook beyond the fourth quarter. That's going to support higher yields. |
We still expect Treasury yields to move higher. The rise in oil is starting to be a concern once again. |